Insights

Regulatory

  • Disclosing transaction costs: The need for a common framework

    Aug 17, 2018

    In this ViewPoint, we consider the regulatory landscape that drives the provision of conflicting standards for cost disclosure. After setting out how costs and charges are incurred in investment portfolios, we compare the advantages and drawbacks of the commonly used Spread and Slippage methodologies, seeking to inform a common disclosure standard.

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  • Roadmap for improving U.S. retirement savings: Make it easier

    Jul 24, 2018

    In order to strengthen retirement security for millions of Americans, we recommend a comprehensive approach that focuses on (i) expanding access to employer-sponsored retirement savings plans; (ii) increasing individual participation in retirement plans; and (iii) improving retirement outcomes through decumulation. In this paper, we outline straightforward policy actions that Congress and the Administration could take to advance these goals and make it easier for millions of Americans to plan for a secure retirement.

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  • US money market fund reform: Assessing the impact

    Jun 22, 2018

    In light of recent congressional action to advance legislation that would roll back the SEC’s money market fund reforms, it is timely to assess the impact and effectiveness of these reforms. In this ViewPoint, we review the circumstances during the 2008 financial crisis that ultimately led to the SEC’s adoption of MMF reforms and consider the impact of these reforms. We believe the SEC should conduct a study of the effects of MMF reform before determining whether rule changes are necessary or appropriate. A roll back of the rules is not advisable without first studying the effects of MMF reforms and the implications of any potential changes.

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  • Planning for retirement: Long-term savings and investment in Japan

    Jun 13, 2018

    Japan has one of the world’s highest average life expectancy at 83.7 years, but its healthcare, social security and welfare systems were designed for a society where people lived to just 70 or 80. In order to ensure adequate retirement income for all, there is urgency to supplement the public pension systems with private defined contribution plans (DC) plans and develop appropriate decumulation solutions as well as tools and technology to help people navigate the retirement planning process. In this ViewPoint, we examine Japan’s current pension system, identify areas for improvement and conclude with recommendations for the Japanese government and industry to work together to develop solutions.

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  • LIBOR: The next chapter

    Apr 5, 2018

    In light of the Financial Conduct Authority’s July 2017 announcement that that it will no longer compel panel banks to submit to LIBOR after 2021, the future for LIBOR beyond 2021 uncertain. Though to be clear, this does not mean LIBOR will necessarily disappear after 2021 (or ever). While 2021 seems far off, the market has a lot of work to do to prepare for this eventuality. Review this View Point to explore our thoughts global benchmark reform.

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  • Regulatory developments in Europe: 2018 outlook

    Mar 27, 2018

    This ViewPoint summarizes the key financial services policy developments impacting European retail investors, institutional investors, and distributors. Important themes include financial stability, development of the European Capital Markets Union, sustainable finance, implementation of MiFID II; as well as other key issues such as retirement and taxation.

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  • February 2018 case study: ETF trading in a high-velocity market

    Mar 12, 2018

    This ViewPoint examines ETF trading during the February 2018 equity market sell-off and volatility spike.

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  • Taking market-based finance out of the shadows: Distinguishing market-based finance from shadow banking

    Feb 14, 2018

    As policy makers are reviewing whether post-crisis regulatory reforms properly balance the objective of mitigating systemic risk without impeding economic growth, it is important to distinguish market-based finance from shadow banking. The current lack of a clear distinction can hinder regulators’ ability to fully monitor and address risk in the financial system. In this ViewPoint, we lay out a framework for differentiating shadow banking from market-based finance using a continuum that corresponds to risks, with a focus on the manner in which activities are funded and whether or not there is access to official sector backstops.

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