Institutional investors named data aggregation as the greatest business challenge in the move towards high standards of governance, monitoring and oversight.
In a survey at Northern Trust’s Investing at a Time of Geopolitical Risk event, 45 percent of respondents cited data aggregation as their biggest challenge, while 29 percent were most concerned about costs and internal resources, and 21 percent named investment transparency as their biggest concern.
Ian Castledine, global head of Northern Trust risk and compliance product, said: "It is not surprising that obtaining the right data is the greatest challenge for investors, particularly as they are faced with changing regulatory requirements against the backdrop of global geopolitical uncertainty."
Although costs and resources did not top the list of challenges, respondents did expect capital allocation for governance and compliance to increase in the near future, as well as internal resourcing costs.
Penelope Biggs is head of institutional investors’ agendas, with a particular focus on response to regulatory changes. She said: "Governance has risen markedly up institutional investors' agendas, particularly in response to increasing regulatory challenges. This has driven the need for more frequent, granular and holistic data for stress testing."
About 40 Nordic institutional investors were surveyed at the even in Stockholm in September.
