We highlight what to expect this quarter and recap Q3’s key regulatory developments.
What could change the game in Q4:
- The US SEC just released its final ETF ruleset, making it easier for ETFs to come to market. Yet several active ETF structures are pending their approval which could open the door for new product types before year end.
- In just a few weeks, Brexit day will be upon us. Ready or not, deal or no deal, the UK will leave the EU. Many asset managers have contingency plans in place and have notified regulators of their plans already.
- We expect the European Commission to publish a review of PRIIPs regulation before year end which could include a look at what’s working, what’s not, and proposals for change.
- The UK’s SM&CR takes effect for asset managers as of December 9. The Senior Managers and Certification Regime holds firm leaders to a high professional standard and increases accountability on individuals.
What happened in Q3:
- China continued trying to draw in foreign investors by removing some of the restrictions in its QFII and RQFII schemes.
- The UN’s Principles for Responsible Investment coalition released their rules for a global standard on ESG methodology. The rules take effect in six months.
- UCITS remains the EU’s policy success story, but regulators are accessing and refining the ruleset. In Q3, they took a look at performance fees, and will continue critiquing other issues including liquidity, delegation, and closet tracking.
Top On The Regs Posts of Q3: