The time spent on regulation by active investment managers is “grotesquely obsessive”, according to a panellist at this year’s Guernsey Fund Forum.
The panellist gave this remark after the moderator asked: “In terms of board time, how much do you spend on regulation and compliance versus actually running the fund/manager business?”
The panellist said that the amount of hours spent on regulation takes away “useful time” and it places more of a burden on senior management. Though he added, “senior management cannot expect regulations to be taken by more junior members of staff”.
Another speaker said that the industry is in need of a “global framework of regulations”.
She said though there has been “a lot of half-hearted stabs” at trying to achieve a global framework, an “overarching global framework is really needed”.
Though the speaker said she understood the notion that “without risk [that regulation generally lessens] you don’t get reward—there’s no creativity or income”, she added.
The moderator brought the subject of technology and artificial intelligence in to the conversation as he asked what technology could do to improve the runnings of firms within asset management.
One of the speakers said: “Technology can bring down the operational costs and can help with pressure on fees.”
The moderator concluded by asking the panellist their views on cryptocurrencies.
One speaker said: “Some of it is complete crookedness, logically it’s a nightmare as it gives an opportunity for rogues. However, he said: “Run properly though there’s nothing wrong with it at all.”
