Data silos, scalable reporting and increased complexity were named as the biggest regtech challenges for investment manager chief operation officers, according to a new report from Clear Path Analysis and sponsored by AxiomSL,
Canvassing 20 leading firms, it found Covid-19, Brexit, new environmental, social and governance requirements, as well as increased mergers and acquisitions activity, were some of the key drivers behind these hurdles.
Among the top three, were integrating disparate internal datasets housed in different departments and external datasets sourced, managed, and held in a variety of different systems.
The situation was exacerbated by the need to comply with multiple jurisdictions’ rule complexities and nuances.,
The survey also noted that the increased regulatory reporting requirements across several different jurisdictions required firms to leverage advanced technologies such as artificial intelligence (AI) and machine learning (ML) as well as hyperlocal domain expertise just to keep pace with the ever changing legislative landscape.
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.”
He adds,“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, says, “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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