Privatization of state pensions will fuel the growth of the money management industry over coming years, but this change will spur increasing regulation on product design and profitability, according to a survey by Arthur Andersen Global Financial Services. Europe is expected to become the primary battlefield: 85% of 319 money managers and corporate executives around the world targeted at least one European country as a key market. Germany was the top-ranked European country because of its high level of pension underfunding. The United States and Japan also ranked as major contributors to industry growth. Only 3% of respondents cited Latin American nations, perhaps influenced by the Brazil crisis. Among the other key findings: E-commerce is identified as a key source of future revenue, with 21% of revenues expected to come from Internet-based channels over the next five years. But many managers have placed investment in electronic infrastructure farther down their lists of priorities. Also, consolidation is expected to continue. One-third believe Fidelity will be a survivor in 20 years time. The next on the list are Merrill Lynch, Deutsche Bank, Goldman Sachs, Vanguard and Morgan Stanley Dean Witter.