Andrew Rogers, CEO of The Gemini Companies, recently discussed innovation and its impact on the fund industry in the year ahead for Money Management Executive.

“The mutual fund industry is experiencing deep changes in many areas of risk management and distribution that could create disruptions, opportunities, and innovation. The area of risk management is highlighted in the derivative rules proposed by the SEC.

With the formation of liquid alternatives, leveraged products, and proliferation of derivatives in many investment companies, the SEC is concerned about the potential of systematic disruption within investment companies. The industry will need to create systematic ways to measure risk and service providers will need to partner with investment advisers to create robust risk reporting that satisfies regulators and boards.”

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