Investment Managers: Regulatory Overload

Few investment managers would disagree that the current state of affairs has translated into one of the most challenging periods in the history of the investment industry. Not only is this the worst economic downturn since the Great Depression of 1929, but investment professionals are also facing an unprecedented amount of new wide-reaching legislation as regulators attempt to avoid another financial crisis of this magnitude.

In a survey on 24 global investment management firms, advisory firm Investit (www.investit.com ) found that the top 5 regulatory activities that are causing them the most concern were the Alternative Investment Fund Managers Directive (53%), the Dodd-Frank Act (51%), the Foreign Account Tax Compliance Act (43%), the Solvency II Directive (38%) and the Retail Distribution Review (32%).