Managed data services provider RIMES is forecasting a perfect regulatory storm in 2016, which it says could be the most significant year for regulatory change in the industry in decades, impacting asset managers and owners across the globe.
It identifies the combination of the Solvency II EU Directive (coming into effect on January 1) and the Financial Benchmarks Regulation, which last week underwent preliminary agreement between the European Parliament and the Council of the EU and is now subject to Parliamentary vote, as a catalyst for change.
Many existing financial data management systems and processes may no longer provide the transparency required by the regulators, leaving asset managers and asset owners obliged to review their current operations, it says.
Addressing a global audience at the third annual RIMES Data Governance Conference last week, RIMES called on asset managers and asset owners to face up to the challenge ahead and calculate the total economic impact of working with a managed data services provider versus in-house operations.
Agathi Pafili, senior regulatory policy adviser, European Fund and Asset Management Association, (EFAMA), said: “The recent intense regulatory reform at the EU level has brought an important challenge as to its implementation. The new rules take time and effort to be put in place, and it is crucial to first properly implement them, and then carefully evaluate their impact. For the European asset management industry it is crucial to use this implementation process to address overlapping requirements that are either not fully consistent with each other, or which inadvertently create an unlevel playing field among financial sectors. In addition, the European Commission’s plan to build a strong Capital Markets Union is a key challenge for the sector to further support its pivotal role in channelling investors’ capital into the economy.”