Asia is not immune from regulation-tightening,
as the legal framework for asset managers across the continent is
getting “just as tough as in Europe and the US,” a KPMG report
suggests.

According to the consultancy firm’s report:
Evolving investment management regulation: a clear path
ahead
, Asian countries, led by Hong Kong and Singapore, are
following the approach adopted by their western counterparts,
increasing asset management regulations to enhance consumer
protection and fair dealing.

“Asia, along with Latin America, is
unquestionably the hotspot for growth; however asset managers would
be unwise to expect lighter touch regulation in the region,” said
Tom Brown, KPMG European head of investment management.

“The fast pace of change in product
distribution, disclosure and investor protection that we have
witnessed in Europe and the US has transferred across to Asia.
While the change varies between jurisdictions, the direction of
travel is crystal clear,” said Brown.

 

Asset manager’s cake slice gets
slimmer

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The costs of increasing regulations are just
one of the difficulties wealth managers have to face in the current
market.

According to McKinsey & Co’s annual global
asset management survey, asset managers’ share of global financial
assets is continuing to drop, losing clients to banks and life
insurance products.

Even though the total amount of financial
assets has gone up €15trn ($19trn) from €154trn to €169trn since
2007 – the amount controlled by asset managers’ experienced a 3%
slide, falling from 25% to 22%.