Wed, Nov 25, 2015
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

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. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  2. Chicago-based Achievement A. M. is shutting down hedge fund following losses[more]

    Komfie Manalo, Opalesque Asia for New Managers: Achievement Asset Management, a Chicago-based hedge fund firm, has announced it is closing down its hedge fund operation following losses on energy market bets this ye

  3. Lyxor Hedge Fund Index up 0.1% (+0.4% YTD) as global macro and CTAs outperform[more]

    Komfie Manalo, Opalesque Asia for New Managers: Global macro and CTAs outperformed the hedge fund space and delivered positive returns last week amidst difficult market conditions, with the Lyxor Hedge Fund Index up

  4. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  5. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the