Asset managers 'fatigued' by cost and scale of regulation

Laura Dew
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Asset management firms are feeling the burden of compliance costs and expect both cost and time burdens to increase in future as the deadline for MiFID II approaches.

A study by asset management consultancy Alpha FMC surveyed ten asset management firms with a combined £6trn AUM.  While firms said they are able to manage the various regulations, they are struggling with costs and budgeting: 78% expect costs to rise in 2015. The Alternative Intruments in Financial Markets Directive (AIFMD) was seen as particularly costly, with 63% of firms spending more than they had anticipated on the issue. Meanwhile, some 89% expected the time devoted to complying with regulation would also rise in 2015. Firms estimated they expect to spend 21%-30% of their ...

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