Shedding Light on Non-Financial Risks – a European Survey

Shedding Light on Non-Financial Risks – a European Survey — January 2012

4. The (Fair?) Cost of Protection

Figure 4.1.5: Country group average of net cost of regulation for depositaries Would greater protection be a net cost to depositaries?

“Fr” is France, “UK” is the United Kingdom, “Ge+Au+Nl” is Germany, Austria and the Netherlands, “Lux+Irl” is Luxembourg and Ireland, and “RoE” is the rest of Europe. Answers are coded in the following manner: -2 for High net cost, -1 for Net cost, 0 for Neutral, 1 for Net benefit, 2 for High net benefit.

Figure 4.1.6: Country group average of net cost of regulation for custodians Would greater protection be a net cost to custodians?

“Fr” is France, “UK” is the United Kingdom, “Ge+Au+Nl” is Germany, Austria and the Netherlands, “Lux+Irl” is Luxembourg and Ireland, and “RoE” is the rest of Europe. Answers are coded in the following manner: -2 for High net cost, -1 for Net cost, 0 for Neutral, 1 for Net benefit, 2 for High net benefit.

be a net benefit according to French respondents, who suggest in open answers that protection of investors in the fund management industry improves investor confidence and in turn benefits the industry overall. This is consistent with the answers that each group provided to our proposed measures. There is no significant

The country analysis is rather instructive for net costs. Transparency, information and governance appear as less of a net loss for asset managers according to United Kingdom respondents compared to other countries. Meanwhile, regulation on restitution would be a net cost according to British respondents and it would

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An EDHEC-Risk Institute Publication