On Tuesday 01 March, Thomas Murray hosted a half day event in London entitled Post-Trade Risk Roundtable. The event sought to explore the regulatory hurdles being faced by those involved with the funds industry, and how firms can prepare to clear these challenges in their post-trade networks.

Topics discussed on the day included: 

Anyone buying a European mutual fund now receives enhanced protection from custodial risks. Do institutional investors need to ask for equal treatment?

Under Europe’s Alternative Investment Funds Directive (AIFMD), which came into force in 2013, fund depositaries have to indemnify investors in the region’s hedge funds against possible losses caused by fraud or negligence at the level of the custodian or sub-custodian.

Organisations such as BlackRock are well-placed to provide prime brokerage to hedge fund managers that are being exited by bulge bracket banks. 

A number of prime brokers including Credit Suisse, Deutsche Bank, Goldman Sachs and Bank of America Merrill Lynch have been terminating hedge fund relationships, particularly those managers deemed unlikely to grow Assets under Management (AuM) or which are unprofitable.  

Base Erosion and Profit Shifting (BEPS), the Organisation for Economic Cooperation and Development’s (OECD) initiative designed to clampdown on multinational corporations’ tax structures, will have a devastating impact on offshore fund centres.

The regulatory squeeze on the so-called "shadow banking” industry is proceeding on so many fronts and in such technical forms, that it is easy to forget it is happening at all. But it assuredly is and one of its manifestations in Europe – the securities financing regulation – will add to the regulatory reporting burden of fund managers.