Global Asset Managers Regulation Introduction

Giles Swan

15 years: Asset management

Giles provides a high-level overview of asset management regulation across the world. Specifically, what's on the regulatory agenda and what the current international standards are, including how foreign portfolio management and investment is regulated.

Asset Management Regulation

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Global Asset Managers Regulation Introduction

18 mins 15 secs

Key learning objectives:

Identify the relevance of international standards and regulation
Understand the main regulators and their functions
Learn the applications of these global standards

Overview:

Global regulatory standards impact funds, securities, leverage and risk management in an international and cross-border fashion. Major standard setters relevant to funds include central banks, ministries and regulators, Joint Forums and other financial services standards setters such as the World Bank.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Summary

What are International Regulatory Standards?

Approaches to either formalise common practice, such as, approaches to liquidity management
To deliver political commitments designed by international standards setters

How do International Standards impact funds?

Influence regional laws and local laws
Can great extraterritoriality
Alter compliance obligations for funds and/or development of global compliance policies (e.g. remuneration)

How can International Standards become Extraterritorial?

Standards can act in foreign jurisdictions where funds have activities overseas
Can create competing compliance obligations
Local rules for fund authorisation
Local rules for distribution
Foreign investment rules

Which International Standard Setters are relevant to funds?

G20 leaders and the FSB group of central bank governors, finance ministries and regulators
Joint Forum of key international regulators, including IOSCO – international group of securities regulators
OECD, World Bank and standards boards such as the International Accounting Standards Board

How are different cross-border funds regulated?

Regulation applies to a fund’s overseas activities all across the value chain. The three main approaches to cross-border fund regulation are national treatment, passporting and recognition both bilateral or unilateral.

How is Foreign Distribution Regulated?

Foreign distribution is subject to local rules where the investor is inc disclosures and reporting obligations
Rules may include; point of sale disclosures, regulatory reporting obligations and a restriction on fee payments to distributors

How is Foreign Portfolio Management Regulated?

Substance rules for delegating firms may apply. These can include; minimum levels of resource, local government standards and operational systems and controls
Local rules for portfolio managers may impact. For example, an assessment of a portfolio managers local regulatory regime and licensing obligations for the foreign portfolio manager

How are Foreign Investments Regulated?

Capital controls and repatriation considerations
This may include: taxation considerations, exposure limitations, sell-side engagement rules and regulatory reporting obligations

What is hot on the Global Regulatory Standards agenda?

ETFs	FSB interest in liquidity transformation of ETFs as part of AM vulnerabilities work IOSCO examining various issues around ETFs including implications for markets in the event of investor redemption, investor understanding, role of APs, implications of ETFs as passive products and also active ETFs
Leverage	Examining existing approaches which typically based on VaR and/or GNE Seeking more risk-based measure(s)
Liquidity Risk Management	Liquidity principles updated to reflect experiences since 2013 including focusing on different tools CIS design (fund design process) Local work undertaken, for instance by SEC, which has informed recommendations
Cryptocurrencies	FSB and IOSCO work streams Domestic initiatives in many countries, including on ICO regulation
Behavioural Finance	Seeking to better understand incentives and whether reverse incentives operate Role of price, presentation of options as interactions in decision making

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Giles Swan

Giles Swan is a Director of Global Fund's policy at ICI Global. Giles started his career in the European mutual fund's sector, before moving to the FSA in 2005. He has led negotiations for the FSA in the Council of Ministers and the European Parliament on the AIFMD and also represented the FSA in ESMAs Investment Management Standing Committee.

There are no available Videos from "Giles Swan"