KPMG: Moving toward More Consistent Rules In Global Investment Management

By Rob Starr, Content Manager, Big4.com

“Evolving Investment Management Regulation: A clear path ahead?” examines the regulatory push in the investment management industry in the U.S., Europe, the Middle East, Africa and Asia, and how it involves an alphabet soup of government agencies and organizations. It says the “avalanche” of regulations is the result of two common objectives being pursued globally—protecting consumers and preventing another global financial crisis similar to 2008.

Jim Suglia, head of KPMG’s investment management sector, Global Advisory, and a lead editor of the report says regulators in the U.S. will keep a diligent and close watch as expanded registration, reporting and disclosure requirements continue to be implemented. Investment managers representing private funds, money market funds and new instruments will continue to be scrutinized with increased frequency and intensity of examinations.

In the U.S., investment managers have been dealing with new regulations brought about by the Dodd Frank Act and other legislation, such as Advisor Registration, Form PF and Cost Basis Reporting, all of which require new forms of disclosure reporting and increased infrastructure needs.

John Schneider, head of KPMG’s Investment Management Regulatory practice in the U.S. and a co-author of the report comments:

“We are beginning to see progress toward more consistency with regard to global regulations but there still remains disparity in the regulatory requirements across the regions,” he said.