Two thirds of asset managers expect profitability to fall within 12 months

Regulatory burden 'insurmountable'

Nearly two thirds of asset managers (65%) believe their profitability will fall in the next 12 months, research from investment software and fund accounting provider Multifonds has found.

The firm's Every Fund Survey 2017 also found that 69% of the 214 respondents from the industry think the growing regulatory burden will be "insurmountable" for new entrants to the market. UK managers currently face impending EU regulations, such as the January 2018 implementation deadline for MiFID II, and have more recently come under pressure from the Financial Conduct Authority (FCA) following its Final Report of the Asset Management Market Study. MiFID II blog: Industry reaction as FCA reveals final implementation rules The FCA predicts the implementation of its latest proposal...