Speaking during a roundtable at International Adviser’s International Fund Links Forum, the experts said the asset management and life industry will need to adapt quickly to the changing regulatory environment.
Richard Garland managing director, Americas & Japan and Asia client groups at Investec Asset Management, said “the train as left the station in terms of regulation”, while BlackRock’s co-head of EMEA retail sales, West Lockhart added the industry “will still be able to take commission, in a post MiFID II climate”.
However, Lockhart also added: “Let’s be clear, every client realises the direction of travel is towards fee-based models.”
This was echoed by Nordea’s head of UK wholesale distribution Paul Malpas, who said: “Our largest client has already said they want everything in RDR-share classes.”
Meanwhile, Jonathan Schuman, head of global business at Matthews Asia, added: “Eventually around 75% of the globe will want RDR-share classes. Banks will be reticent, but the pressure is unavoidable.”
A possible consequence of possible consequence of this “RDR-model” regulation will be a shift away from open architecture, according to Carlo Trabattoni, head of pan-European intermediary distribution and global financial institutions group for Schroders.
Trabattoni added that “more will drift towards guided architecture”.
Garland was more blunt, adding “open architecture is dead”.
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