For asset managers expanding into new markets, launching funds across jurisdictions means navigating different supervisory expectations, different disclosure regimes, different distribution rules and different interpretations of similar underlying obligations. The operational burden is growing at the same time as managers remain under pressure to control costs, protect margins and bring products to market faster.
That is particularly visible in Europe and the UK, but it is equally relevant in newer growth markets like the UAE where local rules, licensing structures and market-access requirements can quickly turn expansion into a resource-intensive and costly exercise.
RegTech Insight recently sat down with Rachel Wheeler, Global Product Head Regulated Fund Solutions at Waystone, to discuss how the firm is helping asset managers accelerate market entry and reframe compliance infrastructure as part of the operating model. Wheeler’s account points to a broader shift in asset management: management company (ManCo) and authorised corporate director (ACD) platforms are moving beyond their traditional role as compliance functions to growth enablers.Governance Infrastructure, Not Just Administration
The regulated fund side of Waystone oversees about 1,550 funds with assets under management of roughly $450 billion. Within that business, the core role is to act as the ManCo in Europe and the ACD in the UK, while also supporting fund distribution and market access. The Waystone ManCo model enables asset managers to expand across multiple jurisdictions without establishing local regulatory infrastructure in each market. Waystone provides the regulated operating framework, including oversight of local requirements and market rules, allowing managers to enter and operate in those jurisdictions through an established platform rather than building that capability themselves.
For many managers, especially those entering Europe from the US or assessing expansion into markets such as the UAE, the practical barrier is the difficulty of establishing local governance, compliance and supervisory relationships quickly enough to enable growth economically.
The Problem is Divergence
The regulatory challenge is divergence. Asset managers are dealing with rules that may look similar at a high level but are applied differently in practice – firms need to manage differences not only between the UK and the EU, but also within Europe itself. Waystone’s model is built around “one service provision, but with regulatory divergence where it’s needed,” says Wheeler, with “significant presence on the ground in each location.”
Wheeler sees larger managers looking for a regulatory solution they can build out globally rather than a jurisdiction-by-jurisdiction fix – global expansion is harder to justify if every new market requires a fresh legal, compliance and governance build. For example, the UK is becoming more outcomes-focused, with its own consumer-led regulatory direction, while European passporting remains in place inside the EU and access into the UK now requires separate navigation through the Overseas Funds Regime.Local Expertise, Central Coordination
Wheeler points to Waystone’s operating model as a differentiator noting the firm’s scale, and organisation. The model comprises c.1,800 regulatory professionals organised into a central business-wide working group with local working groups in each jurisdiction to deliver common technology and standards, with jurisdiction-specific execution.
Waystone maintains direct dialogue with supervisors and industry body participation, including conversations around how newer structures such as the Long-Term Asset Fund (LTAF) are working in the market.
Waystone’s current focus on the UAE is one example of how these themes are playing out in practice. The company has launched a ManCo onshore in the UAE and sees strong positioning for growth across the Gulf region as passporting arrangements evolve.
Asset managers have already spent years outsourcing parts of the middle and back office in response to margin pressure. Wheeler argues that the next phase is about letting managers focus on “creating the alpha” while using an independent specialist to handle regulatory divergence, liability and the infrastructure needed to launch across asset classes and jurisdictions.
Compliance infrastructure in asset management is evolving. What began as outsourced governance is becoming a regulated operating layer to facilitate market entry, product expansion and manage regulatory change. Waystone’s proposition is that it provides asset managers with the regulatory framework, local expertise and operational support needed to launch and run funds across multiple jurisdictions without building that capability in-house. In a fragmented market, that makes it easier to manage regulatory complexity and scale distribution, whilst ensuring speed to market for new product launches and changes.
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