Funds industry set for fresh regulatory wave amid questions of 'systematic importance'

Sector unlikely to be cause of any impending financial crisis

clock • 4 min read

Asset managers look set to endure a wave of new regulatory pressures when the current economic crisis subsides, according to economists and regulatory experts – but the sector is unlikely to be the cause of any impending financial crisis, amid growing concerns about fragilities in the pensions industry.

The 2008 Global Financial Crisis was primarily the result of failings in the regulation of the investment banking industry. It has since led to banks being forced to carry out regular stress-testing, the birth of three new supervisory bodies to oversee regulation and, more recently, the introduction of mandatory ring-fencing to protect the assets of their end customers. Over the course of the 11-year bull market, which has been supported by ultra-loose central bank policy, the investment industry has become increasingly multi-faceted and offers a wider range of mandates, often investi...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Autumn Statement 22: Solvency II reform package outlined

Autumn Statement 22: Solvency II reform package outlined

Reforms cut risk margin and overhaul certain eligibility rules

Jonathan Stapleton
clock 17 November 2022 • 3 min read
FOS to change funding model levy and trial new group fee arrangement

FOS to change funding model levy and trial new group fee arrangement

Compulsory jurisdiction and voluntary jurisdiction set for overhaul

Hope William-Smith
clock 16 November 2022 • 2 min read
Consumer Duty: Four outcomes firms need to achieve for customers

Consumer Duty: Four outcomes firms need to achieve for customers

Sesame Bankhall Group breaks down the regulator's expectations

Paul Fothergill
clock 15 November 2022 • 4 min read