Asset managers may have to undertake a "root and branch" reassessment of business models amid a wave of European regulation set to trigger "huge upheaval", warns State Street.
In its report The Changing Shape of European Investment Management, the asset manager said the shift in regulatory focus from enhancing market efficiency to investor protection will impact product development, drive up costs and force a rethink in marketing and distribution strategies. "Regulation will cause huge upheaval, forcing managers to reconsider many elements of their model from how they structure their operations to the type of product and investor they target," said the report. The implementation of initiatives such as MiFID II, UCITS V and the European Commission's review o...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
