Trustee and Fiduciary Services Global Asset Management Industry Insights

Prime, Futures and Securities Services 22 CROSS-BORDER DISTRIBUTION By 2020, regional fund distribution agreements will be in place in North Asia, South Asia, Latin America and Europe, allowing certain financial products to be sold across borders. At the same time, restrictions are being put in place by other jurisdictions to limit cross-border distribution. So how do respondents feel this may impact cross-border distribution in the next five years? There is perhaps less division with this question compared to others in the survey. Some 39% of respondents feel that cross-border distribution will become harder, while 23% feel it will become easier. This could depend on the jurisdictions into which you market, of course. As the UK looks to exit the EU for example, third-country rules have been further clarified and enhanced. By contrast, in China, they’re looking to open up the market for asset managers. Others may just feel that it’s not yet clear enough to know how all this will play out in practice. A similar dynamic occurred in terms of those respondents who either don’t know or who feel that a more physical presence will be required in the jurisdiction they’re looking to offer services in, with both parties at 14% of the universe surveyed. Finally, 10% feel there will be no difference. As requirements for marketing third-country products increase, what will happen to cross-jurisdiction distribution in the next 5 years? Q13 39 % It will get harder as jurisdictions introduce more barriers to cross-border marketing or restrictions to ownership 23 % It will get easier as jurisdictions open up or remove barriers or introduce mutual recognition arrangements 14 % Jurisdictions will require a physical presence before granting third- country access 10 % There won’t be any difference 14 % Don’t know