National and regional governments are encouraging regulators to balance investor protection initiatives with an economic growth agenda. At the same time, however, the debate on whether investment managers and investment funds are systemically risky rumbles on. Various international bodies and agencies are contributing to the ongoing policy debate, which seems to remain polarized.
Over the last year, regulators have pulled back from designating certain investment managers and funds as “systemically important”. Instead, they are now focusing on investment management activities and the way that open-ended investment funds, in particular, are managed. The industry is seeing an increased number of ad hoc data and information requests to inform the debate.