Financial regulations are easing under the Trump administration, according to a majority of executives at hedge funds and private equity funds who participated in a recent Koger Inc. survey.
Fifty-six percent of the 200 executives polled in January feel regulatory enforcement has decreased under President Trump and 85 percent believe the U.S. regulatory environment is more relaxed than in other countries, according to the survey by Koger, a global financial services technology company.
Instead of worrying about complying with strict regulations, 73 percent of the asset managers said cybersecurity threats are the biggest concern for 2018, followed by a market correction (67 percent), geopolitical risks (38 percent), an economic downturn in the U.S. (31 percent) and an economic downturn internationally (31 percent).
Although regulatory concerns are declining, 73 percent of the fund managers said a new administration could change that.
Cybersecurity issues are a valid concern, according to Koger. Investment firms could be forced to close if data from the firms is breached, which has happened in other industries, said Ras Sipko, Koger chief operating officer.
In other findings, the survey showed 91 percent of asset managers have taken at least some steps to comply with the European Union General Data Protection Regulation to safeguard consumer and investor privacy. The regulation applies to firms that do business in EU countries and will take effect in May.
