LONDON, November 29, 2016 /PRNewswire/ --
The majority of wealth management firms are prioritising improved operational efficiency and client asset protection in the run up to the introduction of MiFID ll regulation in January 2018. This is one of the findings of a recent Clearstream commissioned survey among wealth management firms conducted by Goodacre, the leading specialist consultancy for the securities industry in the UK.
The survey examines how wealth managers and private banks cope with the multitude of new regulatory requirements and continuous market reforms. Investment performance, client service and distribution, client asset protection and operational efficiency are all seen as critically important.
- Increasing regulatory pressure and escalating costs are seen as the main obstacles.
- A lack of historical investment in the post-trade arena has created highly manual processing hubs which have prompted wealth management firms to apply a much greater focus on potential operational risk exposures.
- More than two thirds of survey respondents stated that using a single custodian and fund processing provider for all asset classes could lower costs, generate efficiencies and may provide for enhanced customer asset protection.
- Many post-trade processes will likely become an outsourced utility and replace most of the current 'back office' establishments which still rely on highly manual processes.
- Consolidation within the sector is likely to continue.
The report also includes an article Operational Transition within Wealth Management by Angela Knight CBE.
Stephen Pinner, Goodacre's MD said "The upcoming and significant regulatory changes are causing firms to closely examine their operational infrastructure and determine whether more appropriate alternatives are available. Some companies will install new systems, some will seriously consider outsourcing and some will weigh up possible benefits of ownership by a larger and better equipped organisation".
SOURCE Goodacre UK