Buy-side not as bullish on blockchain, finds survey

Cyber crime is on the minds of asset managers much more than blockchain according to Linedata’s 2016 Global Asset Management and Administration Survey.

In the survey, only 8% of asset management professionals considered blockchain to be disruptive in the next five years despite significant discussion in the media and at industry events around its disruptive potential.

Cyber crime was by far the most disruptive development for most firms, highlighted by 36% of respondents to Linedata’s survey, while movement towards alternative investments and new intermediation models were seen as disruptive by 25% of firms.

Regulation remains a headache with almost 60% of asset managers highlighting it as a major concern, up from around 50% last year. The Market Abuse Regulation coming into force later this year and increased clarity around Mifid II obligations are likely to be the key drivers behind this.

Linedata’s report said: “Whilst the key challenges of managing regulatory change and maintaining operational efficiencies/cutting costs have not changed since last year, there are some indications that the emphasis is now less on acting on regulation, as much of that is in place, and towards a better understanding of the long term systemic changes that regulation is having on the asset management industry.”