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Perspectives

2024 investment management regulatory outlook

Ways to address investment management regulations in 2024

The wave of upcoming new regulations means that investment management leaders must stay current on the latest compliance demands. Otherwise, the cost of regulatory fines can affect your bottom line. Explore our 2024 investment management regulatory outlook to see how you can guard your firm against regulatory risk now.

A message from the Deloitte Center for Regulatory Strategy

Entering 2024, the investment and wealth management industries continue to face a period of intense regulatory and operational change. The Securities and Exchange Commission’s (SEC) rulemaking agenda under Chair Gensler has been historic in terms of both the volume and significance of regulatory proposals. At the same time, enforcement activity has increased substantially.

This sharp shift in the regulatory environment has left firms surprised by aggressive enforcement and hefty fines for widespread compliance failures. To avoid a similar pattern in 2024, firms should consider taking a proactive approach to their compliance program assessment efforts and expand, as needed, their remediation efforts to regulatory areas of focus. This will be in addition to enhancing their capabilities to adapt operational and compliance processes to comply with new and amended rules at scale given the volume of regulatory change on the horizon.

Investment managers face additional regulatory pressure from the Financial Stability Oversight Council (FSOC), which appears intent on designating new systemically important financial institutions (SIFI). SIFI designation for a large investment manager would impose a new layer of regulatory scrutiny from the Federal Reserve Board of Governors (FRB). The FRB supervisory processes are distinct and more open-ended than the SEC regulatory construct.

Technology and business transformation will be a through line for firms as they navigate this challenging environment. Although many changes will be driven by regulatory imperatives, we encourage our clients to maximize their return on regulatory-driven initiatives by also seeking opportunities to enhance their processes and business models with technology. In light of the challenges and opportunities that the current regulatory environment presents, we have chosen to focus this year’s outlook on impacts from the regulatory agenda, operational complexity, and transformation.

Download our report to see how you can prepare for investment management regulations

The financial services industry has much to prepare for in 2024. Discover how financial services organizations can integrate regulatory considerations into their strategy and keep pace with rule changes and enforcement priorities, and anticipate the regulatory impact on their current or future operating model.

2024 Financial Services Regulatory Outlooks 

If you are interested in learning more about the investment management industry, check out our recently released 2024 investment management industry outlook here.

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The conversation doesn’t end here. Connect with our team to see how you can prepare for regulatory shifts and manage your compliance with confidence.

 
 
 
 
 
 
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