Shedding Light on Non-Financial Risks – a European Survey

The survey is based on replies from 163 high-level professionals of diverse horizons from the European fund management industry. The results show that at the top of the list of concerns are transparency, information and governance, followed by the financial responsibility of the fund management industry.

The survey also covers themes such as restitution and depositary liabilities, distribution and judicial powers of investors.

It follows on from a study conducted last year entitled "The European Fund Management Industry Needs a Better Grasp of Non-Financial Risks", which looked at how non-financial risks and failures have impacted the regulatory agenda in Europe and traced the management of liquidity, counterparty, compliance, misinformation, and other non-financial risks in the fund industry. By identifying the distribution of risks and responsibilities in the industry, this study examined how convergence between country regulations could be achieved and assessed how fund unit-holders could best be protected with appropriate regulations, improved risk management practices, and greater transparency.

This research was produced as part of the "Risk and Regulation in the European Fund Management Industry" research chair at EDHEC-Risk Institute, in partnership with CACEIS.