Citi 2018 FinReg Outlook

Welcome There is an urban myth that San Francisco’s iconic Golden Gate Bridge gets a fresh coat of paint every year. The story goes that, due to the harsh weather conditions in the San Francisco Bay, once painters finish painting the bridge they have to go back and start all over again. It turns out the truth is far more prosaic: parts of the bridge are painted every year, but only for tactical maintenance. Nonetheless, I could not help thinking of this myth when reviewing the inaugural edition of our FinReg Outlook. Implementation of the Markets in Financial Instruments Directive (MiFID) 2 at the start of the year was an important milestone in global financial regulation. It marked the end of the nearly decade-long Great Reregulation that followed the global financial crisis. With MiFID 2 in the rearview mirror, the number of major regulatory implementations on the horizon has been greatly reduced. However, this doesn’t mean the industry faces no upcoming regulatory challenges. Rather, they are now of a different type. Much like the bridge painters of the urban myth, policymakers are going back to see if the regulatory framework needs a fresh coat of paint. Their focus will shift from implementation to policy debates about possible revisions. This shift in focus means it is more important than ever that firms stay engaged with regulatory change, for it is during these development periods that the industry can constructively engage with policymakers to help shape future regulations. After all, today’s policy debates will become tomorrow’s regulatory implementations. To help you prepare for the year ahead, our FinReg Outlook features insights from Citi experts, asset managers, and industry experts on a range of global regulatory issues. I hope you find this FinReg Outlook insightful and a useful guide to the 2018 regulatory landscape. Sean Tuffy Head of Market & Regulatory Intelligence, EMEA Custody & Fund Services 3 Table of Contents 8 Things for 2018 4 GDPR: EU Sets the Standard in Data Privacy 6 Checking the Tires: Reviewing UCITS and AIFMD 10 Assessing the FinReg Landscape 14 Preparing for US Liquidity Rules 18 Reshaping the UK Asset Management Landscape 22 After MiFID 2: Four Key Things to Watch 26 Dawn of a New Era for EU Money Market Funds 30 Australia Prepares for Asia’s UCITS Moment 34 ETF Connect: Big Hopes, Big Opportunity 38 Global OTC Regulation: The Evolution Continues 42 On the FinReg Radar 46