2022 is gearing up to be a year of significant regulatory change which will no doubt have an impact on how the fund management industry meets increasing investor expectations around sustainability and transparency.
New frameworks have been drafted and passed, most notably on the three letters that have cropped up more often than any others in financial services regulation over the last couple of years - E, S and G. We may argue Europe is ahead of the game with the Sustainable Finance Disclosure Regulation (SFDR), while the United Kingdom is occupied taking a phased approach to asserting its independence from the EU, and Hong Kong plays catch up adopting a principles-based approach much like the UK.
But ESG isn't the only game in town.
The transition to PRIIPs KIDs will continue to wreak havoc and confusion with a timeline that has been fluid and murky at best. The different versions across the UK and EU will need to run parallel
while the grandfathering of rights wane off. The desired impact of the Cross Border Distribution of Funds (CBDF) regime will remain to be seen, with only a minority of EU Member States having fully implemented the CBDF into their local regulations (at the time of writing), well past the implementation date of 2 August 2021.
And down under, Australia will see how the implementation of the Design and Distribution Obligations (DDO) in 2021, dubbed "Australia's MiFID II", has impacted fund distribution in the new year.
- Evolving ESG Governance and Disclosures
- Transitioning from UCITS KIIDs to PRIIPs KIDs
- Implementing DDO - "Australia MiFID II"
- Progress on the Cross Border Distribution of Funds Regime