Evolving Asset Management Regulation

Asset management regulation is constantly evolving. KPMG’s Evolving Asset Management Regulation report delves into the regulatory priorities, developments, and proposals impacting the asset management industry globally and in Ireland.

This year’s report – our 14th edition – reveals that after four years of rapid regulatory changes, many regulators, including those in Ireland, are now shifting from policymaking to supervision. They are assessing embeddedness, checking compliance, publishing guidelines, and updating rules based on feedback and real-life experiences from asset managers. This is a crucial time for asset managers in Ireland to build robust foundations for regulatory compliance.

While the pace of new regulations may have slowed, the report highlights several rapidly changing key topics and focus areas, which vary depending on the market and the regulator’s stance.

• ESG and sustainable finance: Assess your global product strategy and ESG governance. Implement a common framework across your firm to define which products qualify as ‘sustainable’.
• Digital innovation: Ensure the latest regulatory communications and expectations are factored into your business strategy and your product manufacturing and approval processes.
• Systemic risk and markets: Consider how private assets can be brought into your wider corporate and product strategy. Review the governance arrangements underpinning fund liquidity risk management.
• Building resilience: Build a culture of promoting financial and operational resilience within the board. Assess third party and outsourcing arrangements thoroughly under different scenarios.
• Protecting retail investors: Review your firm’s strategy, governance structures, culture and purpose to ensure it is aligned with customers’ best interests.
• Governance and accountability: Assess board composition to ensure sufficient knowledge, expertise and independent challenge. Evaluate current governance frameworks and accountabilities against regulators’ expectations as they evolve.
• Increasing manager and investor choice: Identify potential opportunities to bring new products to market or grow market share in key geographies.
• Digitalising regulatory change: Adopt regulatory horizon scanning technologies, automate appropriate processes and standardise data collection and assessment