New regulations will result in a shift in power, according to RBC


New European financial regulations will result in depositaries playing a bigger role in the fund management process, according to Jean-Michel Loehr from RBC Investor Services.

Loehr told the Association of the Luxembourg Fund Industry alternative European conference that the Alternative Investment Fund Managers Directive and UCITS V will result in power shifting from the asset managers and from the prime brokers to the banks.

He said: “The intention of new legislation is to give a bigger role to the depositaries – they will play [more of] a policing role from and intervene more in the [fund management] process.