As regulatory demands grow, compliance costs rise. No one doubts that financial markets should be transparent and fair. But is there a risk that regulation will strangle innovation in the funds business? Funds Global Asia, in association with Calastone, surveyed the industry to ask whether technology could provide a solution.
Overview of the research:
- 93% of respondents say the amount of effort required to comply with regulations in the funds industry has increased
- 73% say a side-effect of regulatory compliance is underinvestment in other parts of the business
- 81% say the cost of regulation will ultimately be borne by the end investor
- 82% say legacy technology is a problem for the funds industry, especially in the back office
- 21% say asset managers are good at adopting new technology
- Out of a list of emerging technologies, blockchain is expected to have the biggest impact