Staying ahead of regulatory changes has emerged as the most significant concern for asset managers, according to a study.
The study, conducted among asset management firms by industry data solutions provider FE fundinfo, showed that 41% of asset managers now see keeping up with regulatory changes as the greatest threat to their operations. The researchers noted that this highlights the growing complexity and volume of regulations firms must navigate to stay compliant in the global market.
According to the findings, asset managers are struggling to keep up as global regulations tighten, reflecting an industry-wide shift towards stricter oversight fueled by technological advances, market volatility, and increased transparency demands.
The research found that 39% of respondents view cost pressures as a significant concern, emphasising the need for greater operational efficiency. With profit margins under strain in a fiercely competitive market, firms are being forced to find innovative ways to streamline operations, reduce expenses and maintain profitability.
“Asset managers are facing a dual challenge,” said a spokesperson from the research team. “On one hand, they must navigate an increasingly complex regulatory environment, and on the other, they must do so while controlling costs in an industry where efficiency is critical to staying competitive.”
These pressures are driving firms to invest in new technologies such as data analytics, automation and AI to enhance compliance and operational efficiency, stay ahead of regulatory changes, and optimise costs, the researchers noted.
Learn more at the upcoming Funds Europe webinar “Cost-Effective Compliance: Harnessing Tech to navigate regulatory change”
