Post on 22-Nov-2014
description
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Regulatory Parallel Play
Theresa Hamacher, CFA
President
NICSA
Globalisation of Investment Funds Conference
June 9, 2014
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Regulators are Prepared for Simple or Complex . . . But Not In Between
Mutual funds Hybrid Hedge funds
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Reconsidering the Rules in the U.S. . .
SEC Concept release on mutual fund use of derivatives
SEC Moratorium on new ETFs using derivatives and leverage (lifted)
CFTC Expanded commodity pool operator registration
IRS Suspends private letter rulings on indirect commodity exposure
FINRA Sanctions for improper leveraged and inverse ETF sales; continued focus on suitability for complex products
SEC Sweep exam of retail alternatives funds
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New Rules in Europe. . .
UCITS
Non-complex
Alternative UCITS
Complex?
. . . And UCITS VI looms
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The Investment Industry Provides Products. . .
Mutual funds
ICI
Managed accounts
MMI
Annuities
IRI
Investment advisers
IAA
Life insurance
ACLI
Hedge funds
MFA
Collective trusts
Coalition for CTs
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. . . While Financial Advisers Provide Solutions
FundsWrap accountBrokerage account
Unified management account
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Rethinking Investment Product Sales
SEC Considering a fiduciary standard for brokers
DOL Revising fiduciary rule applying to retirement plans
SECConsidering negotiated
commissions for funds as part of review of Rule 12b-1
GAORecommends that SEC review financial planner titles and designations
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Europe Grapples with Similar Issues
RDR
Retail Distribution Review
UK
Entirely fee-based compensation;
minimum qualifications for
advisers
MiFID II
Markets in Financial
Instruments Directives
EU
Ban on “inducements” for
independent advisers
PRIPS
Packaged Retail Investment Products
EU
Establish uniform rules for all products
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Europe Grapples with Similar Issues
RDR
Retail Distribution Review
UK
Entirely fee-based compensation;
minimum qualifications for
advisers
MiFID II
Markets in Financial
Instruments Directives
EU
Ban on “inducements” for
independent advisers
PRIPS
Packaged Retail Investment Products
EU
Establish uniform rules for all products
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Australia has New Rules, Too
Future of Financial Advice
Ban on commissions
Fiduciary standard
Fee disclosure
Client opt-in
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Other High-Priority Regulatory Issues
Systemic Risk
• Money market funds: U.S. and Europe• SIFI designation: FSOC and FSB
FATCA
• Rebound back to the U.S.?
Market Structure
• What to do with HFTs?
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