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Regulation has pushed yields on triple-A government debt to record lows.
Regulation has pushed yields on triple-A government debt to record lows.
(Comstock Images)

BREAKINGVIEWS

How regulation creates risk in managing investment

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks. Click here to read more international insights.

Regulation is seen by fund managers as the chief buy-side risk, a new study suggests. That’s bizarre, since rules are meant to lower the financial danger in investment management. Well written regulation, and self-regulation as well, should ensure that asset managers have the required skills, capital, infrastructure and time to be opportunistic and prudent in equal measure.