Regulation...it is everywhere; like a sniveling cold asset managers are having to deal with around 30 regulatory legislation's and rising in an ever evolving world.
Excessive regulation can of course hinder growth but with a positive, proactive approach, some asset managers will be able to strategically drive and utilise regulation to find implementation synergies to make sure growth diverts to an upward trajectory in the boardroom meeting.
Brethren in the financial services world have their own issues and asset management has found a very ambiguous terrain, difficult to navigate since the major reform of the banking system. Regulatory scrutiny is seen as one of the key drivers of change across the industry and with only 17% of asset managers (Grant Thornton's statistics) seemingly feeling they are prepared to deal with one of the regulations MIFID II this year, there will be unknown territory being broached in 2017.
What we have seen at the start of 2017 is a tumultuous time as the wider asset management began to really set the market alight by hiring into their MIFID II teams. This is continuing at the time of writing although at a lesser rate as teams are finalised. We foresee this trend continuing until May, where most of the industry will hope they have suitable teams in place to deliver the regulation for Jan 2018.
What else is there to think about? General Data Privacy Regulation (GDPR) will be a mountain that some of the larger asset managers will need to move past in order to effectively unify their data security and show true transparency for personal data. Although this started in April 2016, 2017 will see asset managers truly adopt and evolve their needs to manage this accordingly for the impending May 2018 deadline. This is a huge task for some businesses but with system efficiency being driven from regulation and internally, 2017 will be a key year for data on the whole.
With regulation now tying into the very backbone of the asset management world; many businesses are trying to ensure they adapt and create an infrastructure capable of delivering the changes necessary to be compliant. Some, more than others are utilising this as a long term advantage over their rivals to ensure prosperity. Is your business doing enough?
Morgan McKinley have over 10 years experience specialising in strategy, projects and change management and have been the recruitment partner to some of the leading asset managers. Find out what we can do for you to ensure you make the most of the evolving landscape and position yourself as a market leader either as a candidate or client.