LONDON, July 7 (Reuters) - Global asset managers see regulatory change as the biggest risk for their businesses over the next 12 months, State Street said on Tuesday.
In a survey of 400 managers in Asia, Europe and North America, 32 percent cited regulatory risk as highly likely to increase, compared with 21 percent for market risk, even as ructions in Greece and China dominate headlines.
Fifty-nine percent of those surveyed were planning to raise their investment in regulatory compliance, State Street data released to Reuters showed.
The global Financial Stability Board (FSB) is due to publish final rules for regulating so-called systemically-important asset managers by the end of this year, and the plans have been fiercely criticised by the industry for earmarking funds for greater supervision simply because of their size.
IOSCO, the world’s umbrella body for market regulators, said last month it would launch an immediate full review of potential risks from asset management activities and products, throwing into doubt the planned rules.
Reporting by Carolyn Cohn; editing by Simon Jessop