♪♪ Hello, and welcome to
our latest edition of Global News & Views. Where we focus on
the key regulatory trends impacting the asset management industry. As the industry continues to deepen
it’s relationship with technology, one of the key risk areas starting
to receive significant attention is cyber security. Data collection on products,
customers, and businesses is so central to firms
operating models, the failing to manage
the associated cyber security risks may result in major reputational
and financial damage. Regulators are also taking
this seriously. Indeed the EU is proposing
to pour expertise in cyber research and technology with
the creation of a network of national coordination centers,
from the years 2021 to 2029. And board rooms are also taking note
from recent cyber insights. Suggesting good governance
starts from the top. Putting cyber on
the executive agenda, educating executives,
and offering higher quality management information
in useful formats will provide
a good platform for firms to proactively manage cyber risks. Another key priority that firms face,
is a transition from IBOR’s. Of which,
LIBOR is a prominent example, to alternative risk-free rates
by 2021. The phase-out
is likely to affect asset managers holding IBOR based products. Not just derivatives,
floating reg notes, securitizations, and private debt. But also benchmarks,
or targets for funds or mandates, and calculations
and models for administration. This will probably be one of
the biggest transformation programs for many firms. So market participants
must plan accordingly. Of course, besides IBOR and cyber, there are other topics that will vie for asset managers attention
in the next few years. We do hope you enjoy
reading about them in our latest Global News & Views. ♪♪