Protecting investors: Evolving asset management regulation 2026 report

Around the world, recent policy efforts and supervisory activity demonstrate that retail conduct remains at the top of the regulatory agenda.

In this year's edition of KPMG International's Evolving Asset Management Regulation report, KPMG professionals explore how investor protection regulation is evolving to uncover opportunities and risks for asset managers.

Conduct frameworks are becoming more principles-based, disclosure rules are being reshaped for clarity and flexibility, and conflicts of interest oversight is regaining regulatory prominence. Scams, finfluencers and AI-enabled fraud are also driving coordinated regulatory action, while governance and accountability expectations are being clarified rather than loosened.

What may distinguish successful firms in this environment? In my view, it comes down to strong governance, disciplined oversight, and the ability to deliver high-quality products that meet evolving client needs.

David Neuenhaus

Global Sector Head of Private Capital and Asset Management

KPMG International

Key highlights

Investor protection intensifies despite streamlining

Shift from prescriptive rules to outcomes continues in some jurisdictions

Disclosures become more flexible

Conflicts of interest regain regulatory prominence

Regulators unite against scams and AI fraud

Strong governance and oversight remain central to investor protection

Accountability frameworks are clarified

Retail conduct frameworks

The development, strengthening and embedding of conduct frameworks continues around the world. With some regulators recalibrating measures to ensure they deliver investor protection while not inhibiting growth, the continued importance of growth and competitiveness is evident.

Alongside this focus on conduct frameworks, regulators are also enhancing mechanisms that support effective remediation when investor harm occurs. Download the full report to see how different jurisdictions are approaching this.

Customer understanding and disclosures

Regulators continue to focus on achieving the right balance between giving retail investors clear, useful information that promotes customer understanding while avoiding overly burdensome requirements for firms.

The clarity and quality of customer information in online customer journeys is also prompting regulatory attention. Download the full report to see how different jurisdictions are modernizing disclosures.

Conflicts of interest

Conflicts of interest have been an inherent regulatory focus area, but signals suggest it is now a renewed regulatory priority.

Regulators around the world have completed a swathe of supervisory activities looking at how asset managers identify, assess and mitigate conflicts. Download the full report to find out what’s changed.

Protecting investors online

The growth of social media, finfluencers and the increasing sophistication of fraud and scams are heightening risks for retail investors. Regulators are responding by identifying and removing bad actors, raising consumer awareness and improving financial literacy.

Reflecting these concerns, regulators have again coordinated international action to prevent illegal finfluencers from putting consumers' money at risk.

Strengthening governance, culture and controls

Strong governance, oversight and accountability remain central to investor protection and a key regulatory priority across jurisdictions. Regulators continue to link weak governance controls to poor conduct outcomes, making board and senior management oversight a clear supervisory focus area.

In some jurisdictions, strong governance of pension schemes is seen as increasingly important as they navigate a more complex economic and social environment.

Evolving accountability frameworks

Although some jurisdictions are simplifying accountability and governance requirements, this reflects a desire to clarify expectations and introduce greater proportionality versus a lowering of standards.

Download the full report to see how different jurisdictions are evolving their accountability frameworks.

Opportunities and risks

Potential opportunities
Possible risks for asset managers

Decision-useful disclosures

Simplified disclosures create an opportunity to improve client communications and digital journeys. Clearer, more customer-focused experiences can build trust, improve investor understanding and support retail participation and retention.
Product design

Asset managers that embrace an approach that seeks to bolster financial literacy and design products and services that are inclusive and accompanied by clear communications could benefit from new inflows and greater customer retention.
Reduced risk of regulatory sanction

Embedding conduct frameworks and clearly assigning governance and accountability responsibilities can support good customer outcomes and reduce the risk of conduct-related failures.

Managing diverging conduct requirements

Diverging conduct frameworks across jurisdictions increases complexity for global asset management firms. Firms will want to decide whether to aim for a consistent high-standard, or to flex their approach in each jurisdiction.
Emerging digital risks

Asset managers should ensure attention is being paid to novel reputational, regulatory and financial crime risks posed by the increasing digitalization of customer interactions and increased use of technology.
Governance

In an increasingly complex operating environment, robust governance is vital. Weak or ineffective governance and accountability processes heighten the risk of failures in investor protection and the potential for regulatory sanction.