Regulatory change may make it harder for smaller asset managers to survive, members of the European Fund and Asset Management Association (Efama) believe.
According to a statement from Efama today following its 67th annual general meeting in Vienna, the pace and nature of regulatory change could lead to some enforced consolidation within the industry, “as it becomes more difficult for smaller asset managers to survive and prosper”.
This ultimately removes genuine choice in the market for investors and hampers innovation and diversity, Efama said.
Much of the regulatory changes taking place today are designed to provide for more efficient monitoring of systemic risks and better investor protection. But Efama said its members were concerned that the unintended consequences of the broader regulation, aimed at other parts of the financial services sector, targets problems that contributed to previous financial crises rather than improve the landscape for the investor going forward.
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