New suitability rules imposed on wealth managers globally are creating a multitude of challenges for the industry. Principal among these are the investor protection regulations: MiFID II and PRIIPs, also making their way to the Swiss market as FIDLEG in 2019.
A critical element of these new regulations is that they expose market participants to legal risks from their clients. This leaves little room as to the level of compliance to be achieved, adding to the necessity of a faultless implementation. Given the complexity of these regulations, it is not surprising that a recent survey conducted by Orbium reveals that a majority of wealth management C-Level executives expect an increase of their regulatory and compliance budgets in the coming years, despite significant cost/income and margin pressures.
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