Fragmentation & Complexity of UK/EU Regulatory Divergence in Asset Management

Despite what some may think, UK and EU regulators are fully aware of the challenges posed by regulatory divergence in the asset management space following the UK's departure from the EU and have been taking various measures to address these issues. The challenge is that divergence both in the rules themselves, and the timeframes for implementation will cause additional burden to asset managers running cross-border operations. At present, this is most evident between the EU and the UK, but it should be noted that even within the EU SFDR framework, there are individual NCAs who are expressing concern on the constraints of the article 8/9 system of classifying products and suggesting alternatives. So, is even more fragmented regulatory divergence a possibility?

Read the full article here UK EU Reg Divergence - March 2024