More executives with technology expertise at asset managers should be elevated to board level to help firms cope with the ‘MiFID II’ regulations, it has been said.
MiFID II – the updated Markets in Financial Instruments Directive – is expected to create more need for data management as fund manufacturers and distributors share larger amounts of ‘market information’ about clients.
Jon Willis, chief commercial officer at Calastone, which makes the recommendation for more technology representation on company boards, told Funds Europe: “If you look at funds industry there is a great deal of information flowing through it, a wealth of data in the industry that hasn’t been mined very well and used as well it could be.”
Calastone’s call for more technologists at board level is aimed wider than just asset managers, however.
Calastone, itself a technology firm, researched the make-up of boards and senior management teams in the FTSE 100 and found the number of technologists at board level had doubled to four, while the number of those present in leadership teams was up significantly to 24 from four in 2011.
The research found that the role of chief data officer now represents 2.2% of technologists at senior management level across the FTSE index.
Willis said the increase within the funds industry was “not happening as fast as it ought to”.
Other sectors have had to improve their technology faster than asset management. For example, insurance companies and holiday firms needed to adapt to challenges posed by price comparison sites.
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