In-Depth Survey Reveals: Investment Management Firms To Change Strategies To Keep Pace With New Regulatory Reporting Complexities

Challenges Abound, As Events Emerge And Trends Take Hold…

The pandemic crisis, Brexit, burgeoning environmental, social, and governance (ESG) regulations, and a surge in merger and acquisition (M&A) activity are adding new regulatory reporting complexities to the global regulatory landscape.

Resulting In A Barrage Of New Regulatory Changes

These recent events and ongoing trends have taxed investment management firms’ regulatory data management and reporting processes, increasing their complexity and difficulty. Organizations now need to contend with sourcing large amounts of granular data with greater frequency while managing regulatory compliance across multiple jurisdictions and conforming with their own organizational and fund-structure complexities.

Highlights of the findings of a recent AxiomSL-sponsored survey of chief operating officers (COO) of 20 leading investment management firms conducted by Clear Path Analysis include the following:

Regulatory Reporting Complexities

Mechanisms For Coping

From COVID-19 alone, an abundance of regulatory agita, deliberation, and change became apparent. Firms were required to submit a variety of new regulatory reports under tight deadlines while relying completely on a remote workforce. A prime example was the tightening and then relaxing of EU short-selling disclosure rules and modifications to sensitive industries shareholding compliance requirements – a regulations roller-coaster ride for many firms.

Because of the magnitude of some of these recent events and trends, COOs acknowledge that it may be time to take a new approach.

Considering Emerging Technologies

To keep pace with the evolving regulatory reporting complexities, interviewees stressed the need for effective change-management strategies and robust/flexible technologies. Many trains of enquiry, types of approaches to problems, attitudes to outsourcing, and even expressions of uncertainty were apparent.

One approach to dealing with the difficulties in responding to these regulatory reporting complexities may be looking to emerging technologies such as the cloud, high-performance computing, and AI/ML to automate operations and increase efficiency. Going forward, RegTech/FinTech firms may play a bigger role in assisting financial institutions in their efforts to satisfy compliance requirements.

As a leading RegTech/FinTech firm, the role of AxiomSL is to figure out how best to help investment management firms and other financial institutions deal with pressing change now, and in the future. By providing data-driven technology designed to respond nimbly to change, we commit to making it possible for our clients to future-proof their risk and regulatory reporting programs.

To learn more about the survey results on the increase in regulatory reporting complexities, download the Clear Path Analysis report:

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