A welcome from Emily Clark
I’m delighted to introduce Insights ’24, our annual preview of the year ahead for the alternative asset management sector.
I think it’s safe to say that 2024 will be eventful. The economic, social and political turbulence that has characterised the last few years seems unlikely to abate this year. Indeed, we may be in for an even bumpier ride, and regulators will work hard to keep up.
There are, of course, the megatrends that will impact everyone. AI is clearly one. If 2023 was the year when policy makers started to take the risks of AI seriously, then 2024 looks set to be the year when we start to see more systematic regulation – with the EU’s wide-ranging AI Act being one to watch very closely.
Climate change and its implications – along with other ESG issues – will also stay at the top of the agenda. Asset managers will continue to address investor demand for “green” products, while staying on top of an ever-increasing regulatory burden. Most of that regulation is focused on disclosure, but the new European reporting requirements go way beyond anything we have seen before, and emerging rules will also require businesses to act differently. Many will welcome that shift, but it will certainly come at a cost.
In a year when over two billion people are likely to go to the polls, domestic politics is also increasing uncertainty. Elections in the US, the UK and the EU, for example, could all have a dramatic impact on future policy.
In the UK, it seems likely that there will be a change of government, and the Labour party has publicly committed to some significant changes in the personal tax rules. And whether or not there is a change of government, the UK’s divergence from EU law is likely to continue apace, including on a variety of financial service regulatory issues. The UK’s version of AIFMD is likely to change, and a new sustainability disclosure and labelling scheme for investment products will also start to come into effect.
Insights ’24 covers all of these, and more.
As you read on, you will see that we have classified the key developments into five broad categories – and, within each category, we have picked our top two standout items. These are the legal, tax and regulatory issues that we think will have the greatest impact on asset managers in 2024.
We also thought it might be helpful to include a “jargon buster”, with some of the key acronyms and buzzwords that are likely to be heard in every gathering of alternative asset managers this year! We hope you find it useful.
As always, we welcome your feedback – and we all really look forward to working with you this year. It goes without saying that we have a fabulous team that stands ready to help you deal with whatever 2024 throws at us!
