The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Data Management, Regulation and Risk Top the Agenda at Investit Conference

Share article

At a recent industry conference hosted by Investit, an investment management consultancy, senior investment management executives and third party administrators placed data management, market and counterparty risk, client reporting and regulatory issues at the top of their agenda. Cost cutting also remained a main concern but the overall mood was one of optimism compared to six months ago.

Peter Ellis, managing director at Investit, said: “There was definitely a more positive message at our conference this July in terms of confidence about the future. About 41% of the participants expected things to improve within the next 12 months compared to about 27% at our conference in January.”

“I think this is because six months ago the industry was still in shock over what happened in the fourth quarter of 2008 with the collapse of Lehman” continued Ellis. “Now that the crisis is being dealt with and executives have had time to digest what has happened, they are adopting a more strategic view. They are no longer thinking about how did we get into this situation, but how can we improve our businesses. This is why data management, client reporting, risk management and regulation are top priorities. They not only want to ensure that they have a better handle on the data they use and better control over how they use it, but also that it is more transparent to clients. In addition, they are looking to have a better understanding of risk as well as how they can effectively align themselves with impending legislative changes.”

The Investit Intelligence Conference hosted in London every six months, takes the industry’s pulse, highlighting the focal points for the year. The conference was attended by 76 delegates from 37 major investment management and third party administrator firms, who took part in a poll to name their key industry issues. Breaking down the numbers, the findings showed that 82% of respondents named data management projects a key priority, followed by market and counterparty risk at 77%, client reporting, 75% and regulatory change, 73%.

This is in sharp contrast to July 2007, where supporting commodities, new offshore centres, supporting private equity and mergers and acquisitions were uppermost in the industry’s collective mindset. Last year, in the wake of the subprime crisis, data management (74%) as well as risk management and client reporting (each at 72%) started their ascent in the chart, although OTC derivatives performance attribution captured the most attention, with 86% of the vote. Although the order of priorities may have changed over the past two years, developing a plan of action to tackle these problems is likely to take time. John Robertshaw, principal within Investit’s Operations Practice, pointed out, “The concern about data management has been a perennial issue and one expressed by all stakeholders in the investment management value chain. However, we have not yet seen any material improvement and I will hold my judgement to see if we will be saying the same things about data management in 12 months time.”

Clare Vincent-Silk, principal, Operations at Investit, also believes that fund managers will wait to see how the regulatory landscape pans out before implementing any concrete plans. “We found that although regulatory issues are high on the list for a number of chief executives, the environment is currently too fluid. However, I expect that by next spring, there will be more clarity and investment managers will have a better idea of the impact of the new rules and how to respond.”

Related content

WEBINAR

Recorded Webinar: How to run effective client onboarding and KYC processes

Increasing cost, complexity and regulatory change continue to challenge firms implementing client onboarding and Know Your Customer (KYC) systems. With an effective strategy and a clearly defined pathway, it’s possible to gain a valuable competitive advantage whilst meeting those all-important compliance requirements. But how to get there? With a myriad of different options out there...

BLOG

Fund Managers Need a New Approach to Data to Overcome the Coronavirus Crisis

By Angie Walker, Global Head of Capital Markets Business Development at R3. Businesses across the globe have implemented digital transformation strategies on an unprecedented scale as they battle against the fallout from the coronavirus pandemic – and fund managers are no exception. Fundamental digital transformation requires a totally new approach to the way in which data...

EVENT

RegTech Summit Virtual

The highly successful RegTech Summit Virtual was held in November 2020 and explored how business and operating models are adapting post COVID and how RegTech can provide agile and enhanced compliance for managing an evolving risk and compliance landscape. The event featured daily live keynotes, panel discussions, presentations, fireside chats and Q&A sessions with content available on demand over five days.

GUIDE

Regulatory Data Handbook 2020/2021 – Eighth Edition

This eighth edition of A-Team Group’s Regulatory Data Handbook is a ‘must-have’ for capital markets participants during this period of unprecedented change. Available free of charge, it profiles every regulation that impacts capital markets data management practices giving you: A detailed overview of each regulation with key dates, data and data management implications, links to...