Survey Shows Asset Managers Are No Longer Overwhelmed By Regulatory Storm

Corporate actions processing has improved through automation, and the introduction of a new standard, ISO 20022, aims to advance the practice further. However, universal adoption of ISO20022 may not be so easy.
By Janet Du Chenne(59204)
A survey of asset managers has concluded that while deploying regulation remains a top concern, pursuing investment performance ranks as other crucial challenge for 2014. The regulatory storm that the asset management industry has weathered in recent years no longer appears as overwhelming as it may have one year ago.

Linedata’s fourth annual survey on the priorities and challenges facing the global asset management community revealed 49% of all survey respondents cited deploying regulation as their top current priority. However, 47% claimed investment performance as their main challenge. Respondents included custodians, prime brokers, consultants and advisory firms. In terms of geography, 48% were North American based, 36% U.K., 13% mainland Europe and 3% across the remainder of the globe.

With firms placing an increasing focus on how they drive and maintain investment performance, they must also look at their overall business, how they construct portfolios and determine what new products they can offer, says Linedata. When asked what their greatest challenges will be in the coming 12 months, 48% selected maintaining investment performance.

With 43% of respondents considering moving some aspect of their business to the cloud, it is clear that firms are looking to focus on their core business while letting their technology be managed by external experts. This also is supported by 33% of respondents stating that cutting costs is a current challenge they are facing.

When asked to name the key IT priorities for their firms in 2014, data management and compliance solutions came out on top for all respondents, says Linedata. “As firms look to integrate, cleanse, migrate and manage data across platforms, they require systems in place to product accurate and consistent information.”

“As our clients look to their future, it is clear that they are once again in growth mode and ready to invest globally in IT initiatives,” comments Mike de Verteuil, Business Development Director and Member of the Executive Board at Linedata.

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