In its fourth annual analysis of global financial regulations, KPMG, the audit, tax and advisory firm, says investment managers continue to face daunting challenges brought on by a changing global regulatory environment, which is fraught with unanswered questions and an array of differing rules in each region.

Observers, however, are beginning to see some consistency regarding the implementation of new regulations across the globe, with the United States and Europe setting the bar and Asia catching up.

“We are beginning to see progress toward more consistency with regard to global regulations but there still remains disparity in the regulatory requirements across the regions,” said John Schneider, head of KPMG’s Investment Management Regulatory practice in the U.S. and a co-author of the report.

“The goal is to reach a global connectiveness and consistency as to how regulations unfold, which is critical if we are to make sure the competitive landscape is not significantly altered,” Schneider added.

In the U.S., investment managers have been dealing with new regulations brought about by the Dodd Frank Act and other legislation, such as Advisor Registration, Form PF and Cost Basis Reporting, all of which require new forms of disclosure reporting and increased infrastructure needs.

The report, titled Evolving Investment Management Regulation: A clear path ahead? examines the regulatory push in the investment management industry in the U.S., Europe, the Middle East, Africa and Asia, and involves an alphabet soup of government agencies and organizations. It says the “avalanche” of regulations is the result of two common objectives being pursued globally — protecting consumers and preventing another global financial crisis similar to 2008.

“Consumer protection and financial systemic risk mitigation are the driving forces for regulatory change that are being applied consistently. And while there have been delays in implementing many of the regulations on a global basis, taking the extra time has contributed to making them stronger and more workable,” Schneider noted.