SEC industry intervention is likely to continue into 2024. Notable proposed rules include requiring open-end funds, other than money market funds and ETFs, to use a liquidity management tool known as “swing pricing,” which would include “Swing pricing'' will also be necessary. Execute “hard close of related funds”. If this rule is enacted, it is likely to accelerate the shift away from investment trusts, leading to large amounts of capital flowing into ETFs and bank investment products.
Another proposed rule, demonstrating the SEC's desire to stay ahead of new technologies before they become commonplace, would relate to broker-dealers and investment advisers' use of certain AI-related technologies in their interactions with investors. Focuses on potential conflicts of interest. . The proposed analytical framework released by the Financial Stability Oversight Council also needs to be monitored by asset managers. This framework facilitates the designation of nonbanks as systemically important financial institutions subject to regulation by the Federal Reserve Board (Fed).
In 2024, Basel, a banking regulation aimed at reducing risk within the international banking sector by requiring banks to maintain a certain leverage ratio and maintain a level of available reserve capital, will be introduced. III is also planned to be introduced.
Battles over the direction of the financial services market, including ESG, digital assets and cryptocurrencies, AI, fintech, cybersecurity, and asset management, are likely to intensify in 2024. The regulatory position remains ambiguous and trying to achieve its goals. A balance between growing financial markets and appropriate controls to protect investors.