Apiax: Three steps to turning compliance into a business enabler in fund distribution

In asset management, exploring investment opportunities beyond the regional borders has become as natural as capitalising on those within them. As financial institutions seek out new growth opportunities, both institutional and retail investors look to allocate assets where safe and possible to benefit from the potential of market opportunities.

The global nature of fund distribution is shown by the number of registered cross-border investment funds, which in December 2018 reached nearly 14.000. However, the commonality in cross-border activities does not necessarily mean paving the way for future distribution abroad. Quite the opposite.

As multiple local authorities need to be factored into every step of the process, identifying and acting upon a fund’s full potential could be a complicated business. The local variations in rulesets governing cross-border distribution often create ambiguity around the many dos and don’ts.

Despite attempts to seek clarity, ambiguity may still remain, causing inaction and bypassed business opportunities – especially when marketing and distributing funds in new markets.