Trustee and Fiduciary Services Global Asset Management Industry Insights

Prime, Futures and Securities Services 10 PACE OF REGULATORY CHANGE Following a long period of regulatory change, international regulators are now moving their attention to making sure that changes introduced since the financial crisis are fit for purpose. In our survey, we asked respondents to tell us whether regulators’ assessment of these changes might provide asset managers with a welcome period of calm. An overwhelming majority, 80%, say it won’t provide them with a period of respite. To support this, we can see international regulators’ attention is more focused on culture and governance, the challenges of new technology, and emerging economic, market and operational risks — for example, possible systemic risks introduced by liquidity mismatches, or arbitrage mechanisms. Within Europe, each piece of post-crisis regulation has a review clause, each with a different due-by date. Regulators are continuing to look closely at legislation such as MiFID II/MiFIR, PRIIPs, and MAR, with supervisory convergence being a key driver. The remaining 20% of respondents either feel that the review process will introduce a period of calm (10%) or feel that they don’t know (10%). As regulators evaluate the effects of reforms, will this provide asset managers with a period of calm? Q4 10 % Yes 80 % No 10 % Don’t know