Market dynamics and investment manager uncertainties topped the list of concerns industry experts discussed at April’s 2006 SEI Executive Conference.
Many managers are left wondering which investment avenues to pursue amid ever-changing product technology and approaching regulatory compliance deadlines, say some SEI expert panelists.
“Over the last decade, there has been an explosion of investment products, with technology giving investors and intermediaries more power to pick and choose,” says Paul Schaeffer, conference moderator and managing director of strategy and innovation for SEI. “Now, as the largest demographic cohort in our history moves into retirement, our entire pension system is being reshaped. The whole landscape is changing.”
Some conference speakers said they worry compliance officers are as behind as managers are in defining adequate implement practices and program requirements, even as the date for SEC enforcement draws near.
“The number and complexity of regulatory requirements for asset managers have increased exponentially during the past few years,” says David Tittsworth, executive director of the Investment Adviser Association. “For example, all asset management firms now are required by law to develop written policies and procedures reasonably designed to prevent any violation of the securities laws. Compliance has been institutionalized as never before and the costs have risen dramatically.”