Skip to content

Top 10 checklist for Asset Managers

Editorial Team

Asset Managers are under scrutiny from regulators like never before. Ensuring compliance has meant dealing with these 10 regulatory issues in 2016.

New and forthcoming regulations have turned the spotlight on the asset management industry and made 2016 a particularly challenging year for all firms.

The General Data Protection Regulation, the Financial Conduct Authority’s (FCA) market study on Asset Management and disclosures on remuneration are just some of the regulatory issues Asset Managers need to focus on this year.

In fact, an average of 200 regulatory alerts are issued globally every single day, making compliance an extremely complex and difficult area to navigate.

From heavy fines and reputational damage to imprisonment, the consequences of non-compliance are high. Recently, the Securities and Exchange Commission fined Federated Investors, one of the largest Asset Managers in the United States, US$1.5 million for shortfalls in its regulatory oversight.

The industry has always been regulated, but not as heavily as it is now. So the need for regulatory compliance in its fullest capacity is relatively new to Asset Managers.

Firms must ensure regulatory compliance is understood, implemented and evidenced throughout the firm, by everyone.

As a result of the UK’s extended Senior Managers Regime, which makes those at the top accountable for their actions, regulatory compliance must be taken seriously at board level and filtered to the rest of the firm including those in the front and back office.

With such a minefield of regulations to contend with, how do Asset Managers make sense of what they must comply with?

Our infographic helps by illustrating the top 10 things Asset Managers should address throughout 2016:

  1. One source of data for tax and regulatory reporting. There are now so many areas requiring compliance that firms must be ready at all times to furnish regulators with consistent and accurate information.
  2. The changing global tax environment and tax as a reputational issue. The Organisation for Economic Co-operation and Development is planning measures that aim to close gaps and mismatches in tax rules so profits can no longer be artificially shifted to low or no-tax locations.
  3. FCA market study on asset management. The UK regulator is looking at competition in the industry and asking whether investors get value for money. Its interim report is due later this year.
  4. Packaged Retail Investment and Insurance-based Products. The EU rules, due to apply from January 2017, introduce a key information document giving investors facts in a clear and understandable manner.
  5. General Data Protection Regulation. The new rules in 2018 will harmonize data protection laws across the European Union. There will be fines of up to 4% of global turnover for non-compliance.
  6. Markets in Financial Instruments Directive (MiFID II). Now due in January 2018, the EU’s MiFID II catches up with advances in trading technologies, increases transparency in bond and commodity markets and applies lessons from the financial crisis.
  7. Effectiveness of Oversight Functions. Firms will need to review existing service-level agreements and other contractual agreements.
  8. Remuneration and Disclosures. This year will see the first round of remuneration disclosures under new European rules which aim to curb excessive risk-taking.
  9. Board Management Information. The extension of the Senior Managers Regime means that firms must prove that regulatory risk is properly controlled and that compliance responsibilities are understood throughout the firm.
  10. Brexit. The EU referendum has dominated the year for UK Asset Managers due to their reliance on a range of pan-EU regulatory regimes. In particular, would the “third country” status resulting from Brexit restrict access to the EU single market in the short term


Read our expert talk to understand and make sure that these top 10 regulatory issues are being addressed in your firm as we enter the mid-point of the year.

Anticipate and navigate global regulatory compliance confidently with Regulatory Intelligence