Evolving Asset Management Regulation A sea of voices

The asset and fund management industry has grown significantly in the last decade and its importance to the world financial system is increasingly recognized. The industry and regulators are coming under pressure from a range of “external” voices – demanding investors and consumer groups, clamoring political and economic needs, changing priorities and hopes of civil society, an increasingly noisy press, the explosion in social media and the rapid growth of new technologies.

This sea of voices is directly influencing the regulatory agenda and increasing expectations on the industry. A fundamental rethink of firms' mind-set and investment offerings is required.

• Are we fundamentally reviewing our business ethos and offerings in recognition of changing stakeholder demands?
• Are we anticipating evolving regulatory agendas and supervisory practices? Can our data management and analysis systems accommodate yet more data demands?
• Do our governance model, culture and conduct conform to new regulatory expressions of good practice and increasing client expectations, including accountability, remuneration, diversity and stewardship?
• Are our disclosures to investors transparent and meaningful, and do our services and products demonstrate an appropriate and acceptable balance between what investors are charged and the firm’s profits?
• Are we quickly identifying new market opportunities and responding to increased restrictions?
• Do we recognise that consideration of ESG factors is now a must? Are we in front of or behind the curve in developing our investment processes and product offerings?
• Are we both embracing technological developments and ensuring full consideration of the attendant risks?