Ratings needed for non-financial risks in European Union funds management industry

Risky business


Recent research carried out by Edhec-Risk Institute looked at some of the weaknesses in the European fund management industry.

This found the Ucits directive fails to make adequate allowances for the operational consequences of financial innovation and that non-financial risk has increased, with regulations contributing to this rise.

The research also found that the determination to harmonise the depositary liability regime has not yet been fully transposed into regulation and should not mask the