Wed, Apr 16, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Cerulli finds global fund groups are underestimating the cost of regulatory compliance

Tuesday, December 04, 2012

Beverly Chandler, Opalesque London: The latest edition of The Cerulli Edge-Global Edition publishes the results of a survey of 21 leading fund groups, asking for their opinions on the financial cost of four core pieces of legislation: Markets in Financial Instruments Directive (MiFID) II, the Packaged Retail Investment Products (PRIPs) initiative, Financial Accounts Tax Compliance Act (FATCA), and Solvency II. The survey participants were mostly global firms answering from a European perspective. They were asked to assess each piece of legislation for initial set-up costs and the subsequent ongoing costs of compliance.

Cerulli reports that all respondents expect to spend up to €1 million (US$1.3 million) each per piece of regulation on start-up costs. "On that basis alone, the maximum initial spend per fund group will be €4 million" Cerulli says. "Of the four pieces of legislation, respondents say PRIPs will be the least expensive to comply with. The ongoing costs of PRIPs compliance are likely to be lighter than initial costs." Around 80% of the respondents said they would spend less than €100,000 annually. "Just one in five believe the annual PRIPs bill could be up to €500,000" the firm says, adding that with legislation still at the proposals stage, it believes the full cost of PRIPs will probably be a shock.

"Compliance with MiFID II will cost our respondents slightly more than PRIP......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: European stock-picking fund up 19% YTD, bets on small caps’ high cash level[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Here is a European long/short equity fund that has been beating the odds since its 2008 inception by employing its own investment model, frequent company visits

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque TV: First Trust Advisors launches liquid alternatives platform[more]

    Bailey McCann, Opalesque New York: First Trust Advisors is launching a new liquid alternatives platform aimed at building on the companies existing alternative ETFs offering by adding hedged mutual funds. Senior Portfolio Managers Rob Guttschow and John Gambla recently sat down in an

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo