As regulatory demands grow, compliance costs rise. No one doubts that financial markets should be transparent and fair. But is there a risk that regulation will strangle innovation in the funds business? Funds Global Asia, in association with Calastone, surveyed the industry to ask whether technology could provide a solution. Among the highlights of this survey:
• 97% of respondents in Australia support regulatory action to improve transparency in the funds industry
• 94% say it is important for Australian investors to diversify their exposure to managed funds that invest abroad
• 44% say Ucits will become an important part of the product mix in Australia – a 14-point rise compared with last year
• From the global survey, 93% of respondents say the amount of effort required to comply with regulations in the funds industry has increased
• 74% say a side-effect of regulatory compliance is underinvestment in other parts of the business
• 84% say legacy technology is a problem for the funds industry, especially in the back office
• Out of a list of emerging technologies, blockchain is expected to have the biggest impact
A total of 267 professionals drawn from the readership of Funds Europe and Funds Global Asia participated in the survey, conducted online between January and September 2018. A total of 36 professionals participated in the Australia-specific section of the survey. Respondents were asked to say which part of the funds industry they worked in:
Administration: 40%
Distribution: 21%
Manufacturing: 10%
Other: 29%
Respondents in the “other” category were asked to specify the nature of their work. Responses included consulting, advisory, depositary, governance, fintech, software, venture capital, legal and regulatory.
The respondents worked in these regions:
UK: 29%
Australia: 13%
Luxembourg: 13%
Hong Kong: 10%
Ireland: 7%
Singapore: 5%
Jersey: 3%
Switzerland: 3%
Taiwan: 1.5%
US: 1.5%
France: 1.5%
Isle of Man: 1.5%
Netherlands: 1.5%
Germany: 1%
Malta: 1%
Spain: 1%
Sweden: 1%
Elsewhere in Europe (including Greece, Italy, Belgium, Finland and Slovakia): 3%
Elsewhere in Asia (including Malaysia and mainland China): 1%
Africa: 1%
©2018 funds europe
