GreySpark - EU Asset Managers Preparing for PRIIPS Regulations Must Keep One Eye on UCITS Rules

In light of the recent financial crisis and the subsequent exposure of regulatory weaknesses related to the distribution and sale of retail investment products in the EU, the European Commission began to look for ways to enhance the transparency and robustness of the investment management industry, leading to the creation of new investor protection requirements for market participants.

Consequently, a number of new regulatory frameworks appeared – including UCITS V and PRIIPs – which target similar products with frequently overlapping requirements. As a result, these regulations could potentially interfere with each other creating an ambiguous regulatory environment for investment firms to operate in. However, GreySpark believes that current buyside regulatory confusion can be turned into a useful compliance expertise and, ultimately, into a competitive advantage.