Ocorian: North American fund managers are put off by complex European regulations

Ocorian: North American fund managers are put off by complex European regulations

5 september 2024

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New research from Ocorian shows that nearly all North American fund managers currently find EU regulations complex and predict they will only find it harder to navigate over the next two years – with many saying its over-regulated to the point of being off-putting.

Ocorian’s study with private equity, private debt, real estate, venture capital and infrastructure fund management executives in the US and Canada responsible for $1.591 trillion assets under management found almost all (99%) view the current EU regulations as complex in comparison to their home jurisdictions. Over a third (37%) of these say they are extremely complex.

Almost eight in ten (79%) North American fund managers questioned expect the European regulatory landscape to evolve over the next two to three years, with more than one in ten (11%) expecting a dramatic increase. Just one in five (19%) believe it will stay the same. More than three out of four (76%) expect the overall level of regulation in the European fund management sector to increase over the next five years, with one in ten (10%) of these predicting a significant increase. Around a quarter (23%) think it will stay the same.

While almost all (99%) of the North American fund managers surveyed feel that their organisation is ‘good’ or ‘excellent’ at meeting its regulatory requirements for Europe, nine in ten (91%) say that they and their investors think the European market is already over-regulated. Of these, the majority (61%) say that the level of regulation is so high that it’s off-putting, both for themselves and for their investors, with the remainder (30%) agreeing there is too much regulation but it’s not causing a barrier for entry. Just 4% say it’s not over-regulated and 5% don’t know.

Ocorian’s North American study reveals that the future looks more complicated. Over two thirds (69%) of those surveyed agree that it will become much harder for North American fund managers to navigate European regulatory complexities over the next two years, and almost one in ten (9%) of these strongly agree with this. A further 14% slightly disagree and 15% strongly disagree, and don’t believe this will become much harder over the next two years.

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