Managing the Present: US Regulations 2022

US Regulatory Overview: What to Expect in 2022

February 09, 2022
  • Investor Services
BBH’s Adrian Whelan sat down with Amy Matsuo, Principal and Leader of Environmental, Social and Governance (ESG) and Regulatory Insights at KPMG, to discuss the main regulatory drivers for the U.S. asset management market in 2022.

Adrian Whelan (AW): What are the key regulatory trends that U.S. asset manag­ers should be particularly attentive to in 2022?

Amy Matsuo (AM): Great question be­cause KPMG have recently published our Ten Key Regulatory Challenges for 2022. We anticipate that regulatory “perimeters” will continue to expand and expectations (with or without new regulations) will rap­idly increase. We have bucketed the regula­tory challenges into three distinct areas:

1. Rapid Change

2. Maintain Focus

3. Mitigate Risk

AW: The three KPMG buckets interest me since they are quite like the themes contained in this Regulatory Field Guide for 2022. In particular, the reference to rapid change is one which many global asset managers will recognize. Can you tell us a little more about which rapid changes you think will impact in the U.S. in 2022?

AM: Sure. We have highlighted four spe­cific areas within the rapid change bucket:

1. Fairness & Inclusion

2. Climate & Sustainability

3. Crypto & Digital Assets

4. Platforms & Conduct

In terms of fairness and inclusion, a mix­ture of investor demand, public awareness, social unrest and the priorities and direc­tives of the Biden Administration have fo­cused regulatory attention on supervision and enforcement of consumer and investor protection on a broad scale. They have also expanded the parameters of “fairness” to include all consumer touchpoints.

AW: One of my recent catchphrases I’ve been using is “ESG is everywhere” as global regulators move to integrate ESG principles into their policymaking. Do you agree that ESG will rise significantly up the U.S. regulatory agenda in 2022?

AM: Yes. Pushed largely by significant and widespread investor demand and facilitat­ed by myriad voluntary disclosure frame­works, financial services companies are working toward measuring, monitoring, and mitigating their climate related financial risk. Regulatory expectations in this area have experienced sweeping changes that will continue with rigor into 2022 under ex­isting and expanded jurisdictional authority. Federal financial agencies must develop, and execute on a strategy to quantify, disclose, and mitigate the financial risk of climate change on both public and private assets. Public policy seeks to advance “consistent, clear, intelligible, and accurate disclosure of climate related financial risk” and “to mitigate that risk and its drivers, while accounting for addressing disparate impacts on disadvantaged communities and communities of color.

AW: It was stiff competition but perhaps the most vociferous regulatory debate of 2020 in the U.S. was in relation to cryptocurrency. Is it likely that crypto and digital assets will continue to domi­nate the U.S. policy landscape in 2022 until such time that the rules of engage­ment have been agreed upon?

AM: Regulatory activity around crypto and digital assets is intensifying as usage by in­vestors, companies and even some central banks show widespread interest and adop­tion at retail and institutional levels. The regulatory landscape in the U.S. is evolving alongside the market expansion, with state and federal regulators and legislators all considering approaches to add clarity. Key issues include a focus on chartering, licensing, fraud and financial crimes risk, and consumer and investor protections.

AW: In many ways, crypto is merely another manifestation of the rapid in­crease in nascent technology across the financial landscape. Is the technologi­cal shift also influencing U.S. regula­tors’ minds something we are set to see much of throughout 2022?

AM: Rapid developments in technology, increases in digital banking activity, grow­ing sophistication of data collection, and the increasing influence of social media is reshaping the financial services landscape in ways never seen before or anticipated. These unprecedented times, underscored by ongoing social and economic changes associated with COVID-19, have fostered and accelerated unique advancements in the consumer experience – and given rise to new risks related to data security, fraud, and conflicts of interest.

KPMG’s report can be accessed here: Ten Key Regulatory Challenges of 2022.

BBH 2022 Regulatory Field Guide

Download the full guide

Related Articles

  • Revisiting the Past: U.S. Securities Settlement

  • Managing the Present: The SEC Agenda

Brown Brothers Harriman & Co. (“BBH”) may be used to reference the company as a whole and/or its various subsidiaries generally. This material and any products or services may be issued or provided in multiple jurisdictions by duly authorized and regulated subsidiaries. This material is for general information and reference purposes only and does not constitute legal, tax or investment advice and is not intended as an offer to sell, or a solicitation to buy securities, services or investment products. Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code, or other applicable tax regimes, or for promotion, marketing or recommendation to third parties. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed, and reliance should not be placed on the information presented. This material may not be reproduced, copied or transmitted, or any of the content disclosed to third parties, without the permission of BBH. All trademarks and service marks included are the property of BBH or their respective owners.© Brown Brothers Harriman & Co. 2022. All rights reserved. IS-07852-2021-12-23

As of June 15, 2022 Internet Explorer 11 is not supported by

Important Information for Non-U.S. Residents

You are required to read the following important information, which, in conjunction with the Terms and Conditions, governs your use of this website. Your use of this website and its contents constitute your acceptance of this information and those Terms and Conditions. If you do not agree with this information and the Terms and Conditions, you should immediately cease use of this website. The contents of this website have not been prepared for the benefit of investors outside of the United States. This website is not intended as a solicitation of the purchase or sale of any security or other financial instrument or any investment management services for any investor who resides in a jurisdiction other than the United States1. As a general matter, Brown Brothers Harriman & Co. and its subsidiaries (“BBH”) is not licensed or registered to solicit prospective investors and offer investment advisory services in jurisdictions outside of the United States. The information on this website is not intended to be distributed to, directed at or used by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Persons in respect of whom such prohibitions apply must not access the website.  Under certain circumstances, BBH may provide services to investors located outside of the United States in accordance with applicable law. The conditions under which such services may be provided will be analyzed on a case-by-case basis by BBH. BBH will only accept investors from such jurisdictions or countries where it has made a determination that such an arrangement or relationship is permissible under the laws of that jurisdiction or country. The existence of this website is not intended to be a substitute for the type of analysis described above and is not intended as a solicitation of or recommendation to any prospective investor, including those located outside of the United States. Certain BBH products or services may not be available in certain jurisdictions. By choosing to access this website from any location other than the United States, you accept full responsibility for compliance with all local laws. The website contains content that has been obtained from sources that BBH believes to be reliable as of the date presented; however, BBH cannot guarantee the accuracy of such content, assure its completeness, or warrant that such information will not be changed. The content contained herein is current as of the date of issuance and is subject to change without notice. The website’s content does not constitute investment advice and should not be used as the basis for any investment decision. There is no guarantee that any investment objectives, expectations, targets described in this website or the  performance or profitability of any investment will be achieved. You understand that investing in securities and other financial instruments involves risks that may affect the value of the securities and may result in losses, including the potential loss of the principal invested, and you assume and are able to bear all such risks.  In no event shall BBH or any other affiliated party be liable for any direct, incidental, special, consequential, indirect, lost profits, loss of business or data, or punitive damages arising out of your use of this website. By clicking accept, you confirm that you accept  to the above Important Information along with Terms and Conditions.

1BBH sponsors UCITS Funds registered in Luxembourg, in certain jurisdictions. For information on those funds, please see

captcha image

Type in the word seen on the picture

I am a current investor in another jurisdiction