China is seen as the jewel in the asset manager’s crown after foreign ownership restrictions in the industry were relaxed in April. Global firms including BlackRock, Fidelity International and Vanguard have applied to set up wholly-owned mutual fund units in China, hoping to tap the country’s fast-growing USD2.6 trillion retail fund market.

By Matthew Chapman (pictured), Director, ACA Compliance Group – Geopolitical change and uncertainty, regulatory sabre-rattling and industry shake-ups have combined to create a perfect storm for many financial services firms when it comes to their trade and transaction reporting obligations under MiFIR, EMIR and SFTR.

The new Financial Services Bill 2019-21, which is currently going through the House of Commons, clearly sets out the government’s preferences as to how the UCITS and PRIIPs regimes will progress post-Brexit, fund data company FE fundinfo says.

High set up costs could stymie the fortunes of emerging and start up managers before they even make their first step. Malta offers such organisations the opportunity to set up their business in a low-cost jurisdiction while taking advantage of the high touch service they would benefit from due to the size of the industry.

At its annual, flagship Open Source Strategy Forum (OSSF) – held virtually in conjunction with the Linux Foundation – FINOS (the Fintech Open Source Foundation), has launched its Open RegTech initiative, which aims to expand the successful open collaboration model built between financial institutions, fintech and technology firms to regulators and regtech companies. 

AxiomSL, a provider of risk and regulatory reporting solutions, has developed a new solution to address Net Stable Funding Ratio (NSFR) reporting requirements. 

By Stéphane Badey, Arendt – These are uncertain times, but three solid trends driving the Luxembourg investment funds market can be highlighted.

The private equity industry is currently navigating a number of challenges in addition to the Covid-19 pandemic, which the whole world is facing. As regulation and political will around environment, social and governance (ESG) factors grows, PE firms are coming under increased pressure to incorporate this approach into their investment strategies. These firms are also keeping a close eye on the progress of the Brexit negotiations to make sure to maintain their access to Europe.

Q&A with Marcus Peter & Irina Stoliarova, GSK Stockman

What are the key trends currently driving growth and development within Luxembourg’s funds industry?

There are several macroeconomic factors which support further growth in the private equity, venture capital and real estate space in Luxembourg. Although events like Covid-19, the Brexit transition, US elections and the US-China trade war may damage this potential, managers can also find opportunity in the turmoil.