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A golden age for wealth & fund management as regulatory fog clears

by Dylan Lobo on Jun 23, 2014 at 08:16

While these remain regulatory burdens, KPMG highlights that a number of other significant pieces of regulation, which have been working its way through the system for years, finally came to fruition in the last 12 months.  

These include PRIIPS, Ucits V, the Volcker Rule and Fatca, while others are on the cusp of being finalised.

‘Where proposed new rules once seemed perpetually stuck in the consultation phase, many are now decidedly in the implementation phase,’ KPMG said.

‘Understanding and complying with regulations has been painful and, for many firms, has entailed material cost. But the ending of consultation and the move to implementation has, at last, created clarity around the operating environment.

‘In addition, many regulators around the globe appear to be co-ordinating their efforts as the initial rush of regulation becomes a more thoughtful and streamlined process.’

Shadow Banking

KPMG stresses that while there is potential an enormous opportunity, the industry is likely to come under more intense scrutiny as asset management and wealth firms are increasingly considered to be systematically important institutions.

‘With so many activities previously housed in banks moving over to asset management it is inconceivable that the industry will not be closely monitored,’ Brown said.

Shadow banking is one of the major challenges for the industry, with politicians, regulators and central banks around the globe starting to view this as the next big battleground.

In May 2014 Federal Reserve head Janet Yellen indicated regulation for asset managers was possible, saying regulators needed ‘to really identify clear ways in which the failure of these firms’ would pose risks to the financial system.

KMPG believes against this backdrop it is essential the investment industry’s report and data communication procedures are water tight.

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3 comments so far. Why not have your say?


Jun 23, 2014 at 08:58

Mr Muller is no doubt delighted as to where things stand, depending on matters regulatory for his (presumably) substantial income. As one of the indirect and involuntary contributors to his lifestyle (and that of the tens of thousands involved in the industry of regulation) I must confess to a degree of scepticism.

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Jun 23, 2014 at 09:58

Totally agree PCIAM. This KPMG report appears to be as disconnected from reality as the FSA (FCA) Retail Distribution Review although I confess I haven't read the KPMG one. The clue is in the heading. To describe the wealth industry as being in a "golden age" is simply absurd. Regulators, accountants & legal practices have consistently presided over swathes of market destruction in favour of asset aggregation. The vast array of capital pools are today managed by a relative few. How can the current malaise be described as "golden"? Anyone with a copy of a pre-Big Bang members book may reflect on the diversity that the old market once possessed. The correlation between economic stability, real growth and the market constituents which the market once prided itself on is today pickled by a bigoted large is better approach against an economic landscape that is highly leveraged and job destructive. If that is a definition of "golden age" then someone is living on a different planet to me. The second clue is in the notion that the "regulatory fog" has cleared. Who writes this tosh?

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Jun 23, 2014 at 10:14

I'm not sure he's a heavyweight - Muller-lite perhaps?

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