Money managers under the microscope
One big mess
As you’ve probably noticed, there’s no shortage of regulation in the wake of the biggest financial crisis in 80 years.
IOSCO has been fleshing out pledges made by G20 leaders while the European Commission has put forward its highly-controversial draft law on hedge funds and private equity. Meanwhile the EU is formally reviewing MiFID next year.
Some critics already say there has been little consultation with the industries affected and insufficient co-ordination between the different regulatory bodies.
According to Louise Forrester, consultant at law firm Gide Loyrette Nouel, this result is, rather unfortunately, likely to be one big regulatory mess that wily firms will be able to take advantage of.
“MiFID 2 talks are starting at the end of this year… There is momentum which is unfortunately going to mean more and more chipping away at positions that from a regulatory point of view people thought were agreed,” she said.
“The problem is that there are so many different streams of regulation that it’s difficult to make them tie in with each other… It’s just not going to match, that’s the problem. There will be arbs (between different regulations) — those institutions who have worked out which path is the best one.
“It’s going to be a mess for a horrible long time.”