Asset managers 'fatigued' by cost and scale of regulation

Asset management firms are feeling the burden of compliance costs and expect both cost and time burdens to increase in future as the deadline for MiFID II approaches.

A study by asset management consultancy Alpha FMC surveyed ten asset management firms with a combined £6trn AUM.  While firms said they are able to manage the various regulations, they are struggling with costs and budgeting: 78% expect costs to rise in 2015. The Alternative Intruments in Financial Markets Directive (AIFMD) was seen as particularly costly, with 63% of firms spending more than they had anticipated on the issue. Meanwhile, some 89% expected the time devoted to complying with regulation would also rise in 2015. Firms estimated they expect to spend 21%-30% of their ...