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

custodians across the board (significant in all cases but stricter obligations of restitution), as well as overall. In terms of categories of respondent, we can see that insurers quite consistently think it would be less of a net cost to every party, especially to depositaries. Pension funds, as well as institutional investors,

difference between countries regarding net costs to depositaries. Regarding custodians, the British respondents consider financial responsibility of the industry and stricter obligations of restitution to be significantly less of a net loss than other zones believe, as well as on aggregate. Luxembourg and Ireland think regulation would be more of a net cost for

Figure 4.1.7: Net cost of regulation for asset managers by type of respondent firm Would greater protection be a net cost to asset managers?

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 4.1.8: Net cost of regulation for depositaries by type of respondent firm Would greater protection be a net cost to depositaries?

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.

66

An EDHEC-Risk Institute Publication