Increased regulation 'stifling' asset managers' product innovation

Increasing customisation demand

Asset managers' desire to bring more products to market is being halted by increasing regulation, which could be restricting choice for clients, according to a survey conducted by research firm Cerulli Associates.

The survey entitled Europe: Competitive Landscape, The Cerulli Edge found more than 20% of the managers surveyed said regulation was holding back the development of new products. Angelos Gousios, director of European retail research at Cerulli, said there was conflict between the Financial Conduct Authority (FCA)'s focus on transparency and value for the end client and asset managers' desire to bring more innovative products to market. The FCA said in its 2015 report entitled Thematic Review of Product Development and Governance, that "senior management must do more to put customers a...