circle with loop hole


2022 investment management regulatory outlook

Meet impending deadlines while keeping an eye toward new developments 

Foundational, evolving, and emerging topics are all compliance priorities for the investment management industry

Investment management regulations and compliance

In the investment management space, there are tried and true regulatory topics—like valuation and adviser marketing—that we consider to be foundational. In addition, there are critical topics that are getting a fresh look from the regulators; we consider these to be evolving topics since changes are likely to existing regulation or its interpretation in 2022. Emerging focus areas are those where the regulatory perimeter is pressing up against previously unregulated activity. Regardless of their classification as foundational, evolving, or emerging, the topics presented in the report represent issues that investment management leaders should prepare for.

Among the topics presented in our 2022 investment management regulatory outlook are:

  • Derivatives – Funds are racing toward an August 19, 2022, compliance deadline for Rule 18f-4, which requires funds to implement a derivatives risk management program. Unless considered Limited Derivative Users and not required to comply, activities include selecting a Derivatives Risk Manager (DRM) and drafting a Derivatives Risk Management Plan (DRMP).
  • Fair valuation - Beginning on September 8, 2022, funds will be required to comply with Rule 2a-5, designed to provide fund boards of directors and registered investment advisers with a consistent, modern approach to making fair value determinations (risks, testing, and evaluation and oversight) across all mutual fund groups, including BDCs.
  • Modernization of investment advisor marketing - Advisers must align advertising and marketing practices to meet Rule 206(4)-1, which impacts communication and substantiation of facts, benefits, risks and limitations, performance results, testimonials, ratings, endorsements, etc.
  • Cyber, fraud, and financial crime – As digital transformation has accelerated, so has the risk of cyber attacks. Regulatory bodies expect investment management firms to be diligent in areas including authentication and risk management as described in Reg S-P and Reg S-ID subpart C, the FFIEC's "Authentication and Access to Financial Institution Services and Systems", and other reports.
  • Changes to money market fund pricing – Firms should be prepared for the SEC to adopt its amendments to the money market fund rules as proposed.
  • Digital assets - We expect federal regulators to use the full extent of their authority to regulate the crypto space in 2022. We anticipate that the SEC will further clarify its interpretation of when a stablecoin is considered a security – potentially through continued enforcement actions.
  • ESG Investing - While there were relatively few rules proposed or finalized in 2021 specific to climate or Environmental, Social, and Governance (ESG), indications are these areas will remain on regulatory agencies’ (SEC and DOL) agendas and new rules may be introduced in the coming year.
  • DEI and financial inclusion – Diversity, equity, and inclusion (DEI) efforts appear to be regaining momentum, including disclosure requirements and “comply or disclose” efforts as well as the Asset Management Advisory Committee (AMAC)’s recommendations relating broad investor and market interest in diversity disclosure by asset management firms.
2022 Investment Management Regulatory Outlook

2022 investment management regulatory and compliance insights

Select from the latest Center for Regulatory Strategy releases below to learn more about investment management regulations and investment management compliance trends we are monitoring.

After more than two years of pandemic impacts, the world is a different place. It seems as soon as some sense of stability sets in, a new and unforeseen risk emerges. Social and environmental movements have transformed the expectations of corporate responsibility. And digital technologies are rapidly evolving – many of which will be transformative to centuries-old financial systems. In this reality, regulators and the financial services institutions they supervise are racing to keep pace.

2022 Financial Services Regulatory Outlooks Collection 

If you are interested in learning more about the Investment Management industry, check out our recently released 2022 Investment Management industry outlook here.

Ready to talk?

Fullwidth SCC. Do not delete! This box/component contains JavaScript that is needed on this page. This message will not be visible when page is activated.

Did you find this useful?