Financial Regulation

Drowning in new regulation?

Yes, earnings are under serious pressure in the financial sector. It will stay like that going forward. The rational answer is to rethink work processes and optimise where possible with deployment of new technologies and new services.

We have witnessed a strong increase in the regulation of the financial sector.

For small and medium sized investment firms, catering to private investors, the new regulations have not just been a wave but a deluge. Many companies are still struggling with the final implementation of the MiFID2 regulation which entered into force in early 2018. And it continues.

As regards funds, things are not much better. Significant new requirements for documentation and new requirements regarding the handling of benchmarks and these are hitting in these months.

Indeed, some of the changes are challenging. Private banking and asset management were never about transparency regarding margins and investment risk.

Bad performance was borne by the clients as it was never clear who made the bad decisions. New regulations have adressed these points head on.

Yes, earnings are under serious pressure in the financial sector. It will stay like that going forward. The rational answer is to rethink work processes and optimise where possible using new technologies.

Many have not yet accepted the uncomfortable truth: that regulation is expensive. Many still try to find way to avoid it.

Private banking and asset management were never about transparency regarding cost and investment risk.

Bad performance was borne by the clients as it was never clear who made the bad decisions. New regulations have adressed these points head on

Our attitude is the opposite. Regulation is a fact of life. Adapting to it should be seen as an investment in the future to maintain your competitiveness.

Contact us and let us evaluate the situation together with you. We analyse the situation and create a comprehensive gap analysis. We will then give you an offer of help bringning in other providers if it appears that eg. an upgrade of your IT system is required.

We have helped companies getting ready for the changes, so we stand ready to advice and help your company.

Benchmarks? Do we need them?

Benchmarks? Do we need them?

New benchmark recommendations from ESMA aim to correct the way funds are using benchmarks. Since the introduction of the Benchmark Directive in 2018, many funds have effectively removed relevant...

The problem with KIIDs?

The problem with KIIDs?

Much like the piece of paper you find in any pack of medicine, the KIID documents were meant to be something that the investors could read before investing in order to check that the investment fund...