“Asset management professionals will continue to feel anxious and uncertain through 2018,” according to Confluence.
Though the data management provider predicted an “eventual positive systemic change” if the industry can meet new back-office demands.
Confluence explained that these concerns will most likely come from three main areas, regtech, regulatory anxiety, and new rules initiated by the US Securities and Exchange Commission (SEC).
The arrival of SEC data-intensive focus will spur industry adoption of data analytics in fund compliance and governance, Confluence said—SEC’s Rule 30e-3 on electronic delivery of shareholder reports would also increase this anxiety.
Confluence claimed that Rule 30e3 and the use of derivatives by registered investment companies “will almost certainly remain unresolved” through 2018.
SEC’s modernisation will, according to Confluence, eventually see asset managers enhance their compliance and governance practices which will see data analytics applied internally across back-office operations.
The data management provider predicted that regtech will make way for a ‘datatech’ movement in across the back-office operations in the coming year.
Confluence predicts that by designing and optimising opportunities around shared data, the back-office process will improve through eliminating process proliferation and redundant data processing.
Todd Moyer, Confluence COO, said: “We expect significant, measurable transformation across the asset management industry in 2018.“
“While the implementation of SEC modernisation is the most obvious driver of that change, we believe that back-office professionals will see this as a rare opportunity to transform their operations in a way that goes beyond compliance to harness data in new and powerful ways for their businesses and their clients.”
