Progress in the Global Investment industry is somewhat slow. In an analysis conducted by KPMG, the global firm synonymous with tax audits and advisories, it has been revealed that the inconsistency in regulations exhibited over different global regions has bottlenecked progress.
KPMG reveals that investment managers are faced with challenges revolving around the dynamic global regulatory environment.
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All the same, there are pockets of hope as observers are beginning to take note of the gradual consistency in implementation of new regulations across regions. This is particularly so with regard to the U.S and Europe, which seem to be setting the pace at the moment, while Asia follows closely behind.
U.S investment managers have been dealing with new regulations which seem to have an inclination towards increased infrastructure needs and newer fashions of disclosure reporting. These regulations have been brought about by the highly publicized Dodd Frank act among other legislations.
John Schneider, co-author of the KPMG report and head of KPMG’s Investment Management Regulatory practice in the U.S, shared an interesting insight on the matter. He mentioned that although progress was somehow slowed, consistency had been noted, citing that there were still some prominent inequalities across the globe.
Schneider also went on to add his remarks concerning the overall goal. Schneider exclaimed that the primary goal leaned towards enhancing a good level of global connectivity and consistency. He added that this would play an instrumental role in maintaining a relatively stable competitive landscape.
The KPMG reported spans over a rigorous 54 pages, and places profound accents on the regulatory push that has suppressed the American investment management industry. In the report, it is noted that most of the current regulations exhibit divided interests. On one hand, regulations are geared towards protecting consumers, while on the other hand they are designed to prevent the episodes from the infamous 2008 financial crisis.
The Flip Side
In as much as a good number of people have rallied a skeptic outlook on the new regulations, there are indications that the changes may offset a new chapter of growth and opportunities in the investment industry.
Jim Suglia, the lead editor of the report, remarked that the regulations helped fortify the once eroded confidence in investors, and mentioned that the regulations opened doorways for more opportunities for economic growth.
Suglia believes that investors are now pay very close attention to detail. He adds that this could be advantageous to the industry. His main argument is that investors will become familiar with the new regulations that are currently marked with a lot of mystery.