Transparency Needed To Win Confidence Back


    The global asset management industry must become more open and transparent to win back investor confidence, says a report by the Financial Centre Futures Program in Long Finance sponsored by the Qatar Financial Centre Authority. It says that the European sovereign debt and eurozone currency crisis are the biggest challenges facing the industry, as they continue to imperil the financial system, undermining confidence. “This crisis will not be addressed by a set of immediate short-term palliative measures. The cure will take time; perhaps it will be a generation before certainty returns to the asset management sector that enables the industry to take a longer term and considered view of its growth,” it says. It identifies the Asia Pacific region and the BRIC countries as the key areas for sustained growth of asset management. However, this won’t necessarily represent a windfall. “Investment culture will take root in Asia, but not so fast as to create a honey pot any time soon,” it says. For the industry overall, rebuilding trust and confidence is critical, it says. Some of that will come from more intensive regulation, but “the industry has to develop capabilities to deal with the loss of confidence.”