2026 Regulatory Outlook: From debate to action

January 15, 2026
  • Investor Services
Step into the cinematic world of regulation with the 2026 edition of our annual Regulatory Outlook. This year, Adrian Whelan brings the twists and turns of fund regulations to life through the lens of movies. This report spotlights the key regulatory themes set to shape the year ahead for operations, distribution, and product teams.

2026 Regulatory Outlook

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Why frame regulation around movie genres? Beyond the drama and cliffhangers, we’re setting the stage for a year when policy moves off the page and onto the screen, shifting from drafts and deliberation to implementation and action.

This year will have it all: fast-moving action as fund tokenization gains momentum, a vibrant animated adventure through the world of digital money, and the must-have mystery as Europe looks to solve its retail participation conundrum.

Lights, Camera, Regulation!

Sinead McIntosh and Adrian Whelan from BBH were joined by Lizzy Galbraith from Aberdeen to examine the geopolitical outlook and key financial and economic trends currently shaping the asset management industry.

The conversation covered the impacts of upcoming US and European elections, possible regulatory and tax changes, and shifts in US policy. It also addressed Europe’s rising defense spending, how the European Savings and Investment Union (SIU) helps move private capital, the switch to a T+1 settlement cycle, asset tokenization, and signs of a sustainable investing comeback.

Key scenes

  • Can Europe Finally Solve its Capital Market Mystery?

    Europe is seeking to mobilize citizens’ savings into long‑term investments to help address emerging economic shortfalls. In 2026, we expect further changes in tax policy and regulation as policymakers work to make this shift a reality.

  • Regulating Nascent Technology: Remaking a classic

    Digital assets, stablecoins, cryptocurrency, and artificial intelligence will continue to become mainstream. Foundational principles such as investor protection, resilience, good governance, and transparency will be central to 2026 discussions.

  • Tokenization: Industry’s Digital Quest Advances

    Advancements in tokenization are anticipated to grow as regulatory frameworks become clearer and proof-of-concept projects advance. Look out for advancements in asset fractionalization and innovative digital distribution channels, which may encompass both private and exchange-traded funds.

  • Digital Cash: Cartoonish or deserving of critical acclaim?

    As regulations and innovations continue in the digital currency space, multiple digital payment options are expected to coexist alongside cash. Ones to look out for include EU MiCA revisions, the newly minted US triumvirate of the GENIUS, Stable and Clarity Acts, and the UK’s three open consultations on crypto assets.

  • Regulatory sequels remain popular in 2026

    In 2026, significant regulatory updates will impact banks and asset managers, continuing the trend of sequels in regulatory frameworks. These changes focus on enhancing rules for funds, settlement cycles, ESG disclosures, cybersecurity, and investor advisory frameworks.

  • The US market: the world watches on the edge of its seats

    The SEC’s pro-market stance will continue to encourage innovation, even as overall regulatory scrutiny eases. However, investor protection remains a bipartisan priority, meaning fair treatment and safeguards, especially for emerging asset classes and technologies.

  • SUSTAINABLE INVESTING: AN UNDERDOG STORY

    Sustainable investing faces challenges but is poised for renewed focus as geopolitical instability heightens attention to environmental, societal, and governance risks. While the US delays federal climate disclosures, other countries like the UK, Australia, and Brazil continue aligning with international sustainability standards.

 

Ready for lights, camera, action?

Download the full Regulatory Outlook for 2026.

2026 Regulatory Outlook: Re-writing the script
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