Thinktank warns regulatory burden stifling fund management innovation

10 European regulations on the agenda

New City Initiative (NCI) has said EU regulators have failed to acknowledge the key differences between fund groups and banks nearly seven years after the financial crisis, prompting them to pursue an agenda which is damaging for smaller firms.

In its latest report, The next five years; regulatory challenges that will impact asset managers, NCI said a heavy-handed approach to the asset management sector is stifling innovation at smaller firms and restricting competitiveness as their regulatory burden continues to grow. In the report, the NCI examined the potential impact on fund groups of 10 incoming regulations, such as AIFMD, the Financial Transaction Tax (FTT), OECD Common Reporting Standards and Solvency II. It found growing regulatory pressures are reducing the availability of manager choice for investors at a time when...