The FSA has published a speech given by Dan Waters (Director of Retail Policy and Asset Management Sector Leader, FSA) at the TISA Annual Conference.

In his speech Mr Waters discusses the following key regulatory challenges that face fund managers:

  • The Retail Distribution Review (RDR). Included in this part of his speech Mr Waters states that the RDR is not solely focused on intermediaries in the retail market. It is aimed at the distribution of all retail investment products and services and includes all participants in that market including fund managers.
  • Product design and target markets in the context of the FSA’s Treating Customers Fairly (TCF) initiative. Mr Waters makes the point that the asset management industry needs to take TCF seriously and actively engage with it.
  • The significant developments in fund management that are occurring on the European stage. Mr Waters states that the European Commission is actively pursing three major areas at the moment. First, significant amendments to the UCITS Directive. Second, possible European solutions for alternative investments, beginning with real estate investment funds.

The Commission’s expert group on open ended real estate funds is due to produce a report before the end of the year or at the start of 2008. Third, exploring the difficult issues around cross-sectoral competition, that is, banking, insurance and funds products, and the regulatory arrangements that apply to them. The Commission has already published a call for evidence on the impact of the fragmented regulatory landscape for retail investment products. The deadline for comments on this call for evidence is 18 January 2008. The Commission will then publish a Feedback Statement in March 2008.

View FSA speech -Current regulatory issues and challenges for the funds industry, 14 November 2007