Why investment professionals must play a bigger part in regulation

Working together with regulators will help fund managers to succeed

Nitin Mehta, managing director for EMEA at the CFA Institute, explains how regulators and the investment industry can work more closely together to achieve common goals

Interaction between regulators and the investment industry has rarely been clear cut. The primary aim of regulators is to protect investors, while the investment industry also has to generate profits for shareholders. The tension which ensues often colours much of the dealings the two have.  Regulators demand sellers observe standards of suitability and transparency in the sales process. At the same time, the industry is motivated by differentiation and profitability when serving the same consumers which the regulator wishes to protect. Given the divergent priorities, each eyes the ot...