Data silos, scalable reporting and increased complexity emerge as biggest regtech challenges, survey finds
20 August 2021 US
Image: WrightStudio/stock.adobe.com
A survey conducted by Clear Path Analysis has found the biggest regulatory technology challenges for investment managers COOs to be data silos, scalable reporting and increased complexity.
The COVID-19 pandemic, Brexit, new environmental, social and governance requirements, as well as increased mergers and acquisitions activity, are exposing significant regtech challenges for investment management firms, the survey found.
Integrating disparate internal datasets housed in different departments and external datasets sourced, managed, and held in a variety of different systems, is one of three major regtech challenges.
Additionally, the growing regulatory reporting requirements in dozens of different jurisdictions have required firms to leverage advanced technologies, such as artificial intelligence and machine learning, just to keep pace with global requirements.
The survey also found that a host of new regulatory mandates, such as changing short-selling rules and evolving ESG disclosures, has forced a need for hyperlocal domain expertise. Consequently, COOs are relying more on regtech firms to provide this capability.
COOs from 20 different firms took part in the study that was conducted by AxiomSL.
Hopeton Lindo, director of client relationship and asset management at AxiomSL, says: “We undertook this industry analysis with Clear Path Analysis to further understand the industry pain points and uncover the ways in which leaders are staying one step ahead to future-proof their risk and regulatory reporting programmes.”
“We found that change is indeed the only constant in the realm of global regulatory reporting, but the industry is also embracing new regtech solutions to manage that challenge.”
Noel Hillmann, CEO of Clear Path Analysis, comments: “To stay compliant in the current regulatory landscape, investment management firms need to source and produce larger amounts of granular data with greater frequency than ever." He adds: “Throughout our interviews with industry COOs we consistently found that a combination of globally accessible technology and deep domain expertise is key to keeping pace in this environment.”
The COVID-19 pandemic, Brexit, new environmental, social and governance requirements, as well as increased mergers and acquisitions activity, are exposing significant regtech challenges for investment management firms, the survey found.
Integrating disparate internal datasets housed in different departments and external datasets sourced, managed, and held in a variety of different systems, is one of three major regtech challenges.
Additionally, the growing regulatory reporting requirements in dozens of different jurisdictions have required firms to leverage advanced technologies, such as artificial intelligence and machine learning, just to keep pace with global requirements.
The survey also found that a host of new regulatory mandates, such as changing short-selling rules and evolving ESG disclosures, has forced a need for hyperlocal domain expertise. Consequently, COOs are relying more on regtech firms to provide this capability.
COOs from 20 different firms took part in the study that was conducted by AxiomSL.
Hopeton Lindo, director of client relationship and asset management at AxiomSL, says: “We undertook this industry analysis with Clear Path Analysis to further understand the industry pain points and uncover the ways in which leaders are staying one step ahead to future-proof their risk and regulatory reporting programmes.”
“We found that change is indeed the only constant in the realm of global regulatory reporting, but the industry is also embracing new regtech solutions to manage that challenge.”
Noel Hillmann, CEO of Clear Path Analysis, comments: “To stay compliant in the current regulatory landscape, investment management firms need to source and produce larger amounts of granular data with greater frequency than ever." He adds: “Throughout our interviews with industry COOs we consistently found that a combination of globally accessible technology and deep domain expertise is key to keeping pace in this environment.”
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