“There is a resounding message of uncertainty about the impact of Brexit”, in the fund industry, according to a new survey released by Milestone Group.
Almost all (96 percent) survey participants said that Brexit is a key issue for them.
Less than 30 percent of those asked were confident that there would be no negative impact on UK financial services.
Milestone Group, which released the research on 11 April, investigated how the industry is addressing outsourcing and oversight, in the context of Brexit preparations.
Some 78 percent of fund managers who responded agreed or strongly agreed that it is important to demonstrate independent oversight of any outsourced service providers.
Elsewhere, 64 percent of the fund management community asked said it was re-evaluating its fund operating model in light of Brexit, with consistent results across UK and European-headquartered firms.
Almost half of the respondents said they were looking to review or upgrade their oversight of outsourced processes or IT systems due to Brexit, while almost 80 percent of respondents said they have upgraded their oversight process or are planning to, as the result of a review.
Paul Roberts, CEO of Milestone Group, commented: “There is no question that Brexit is causing a lot of uncertainty not only for UK firms but the broader European fund management community.”
He added: “What is interesting though, is that while the results show that Brexit is an important trigger, it’s not the only factor. Regulatory pressure, fund board and broader target operating model reviews are providing the impetus to review oversight processes in many cases.”
“Ultimately, the resounding message is that the industry sees a clear need to demonstrate independent oversight of outsourced processes to both regulators and investors. While most are confident they have the right team and service providers, there is a focus on getting the right tools in place to industrialise the process for scale and efficiency.”
