5 Key Considerations for Regulatory Readiness with Managed Services

Author:

Evelyn Lynch
Senior Director, Managed Services at Confluence

Ensuring your firm is prepared to meet complex regulatory requirements is essential. Managed services can offer strategic support, but success depends on evaluating your firm’s needs and aligning with the right provider.

Here’s a checklist to help you evaluate whether outsourcing is the right strategic move for your firm by identifying gaps, assessing potential benefits, and aligning with the right service providers.

1. Evaluate Your Current Compliance Strategy

Assess whether your in-house team is equipped to keep up with regulatory demands.

• Is your in-house compliance staff struggling to meet reporting deadlines or regulatory updates?
• How often do errors, missed filings, or last-minute scrambles occur in your compliance processes?
• Are your compliance functions diverting significant time and resources from core business activities?

2. Assess Any Technology Gaps

Identify whether your technology infrastructure can support evolving compliance requirements.

• Does your current technology infrastructure support automated reporting and real-time compliance tracking?
• Are your systems integrated, or do you rely on manual processes that create inefficiencies and errors?
• How quickly and with what effort and investment budget can your current technology adapt to new regulatory requirements or changes?

3. Understand the Scope of Regulations

Regulatory frameworks are constantly evolving, and your firm must stay informed.

• Are you aware of emerging regulations that could impact your operations?
• Do you have the resources and expertise to interpret and implement new regulations as they arise?
• How often do you conduct internal audits or mock exams to assess your compliance readiness?

4. Conduct Cost-Benefit Analysis

Analyze the financial implications of outsourcing versus maintaining in-house compliance.

• What are the current costs (staff, technology, training) associated with maintaining in-house compliance functions?
• How much time and money could be saved by outsourcing routine compliance tasks?
• Would outsourcing free up resources to invest in other growth areas, such as portfolio management or client services?

5. Evaluate Providers

Look for managed services providers with expertise in the asset management sector, scalable solutions, and a track record of compliance success.

• Does the provider specialize in compliance management for asset managers and understand industry-specific regulations?
• Can the provider scale its services to match your firm’s growth and evolving regulatory needs?
• What is the provider’s track record in meeting deadlines, avoiding compliance errors, and aligning with regulations?

Disclaimer

The content provided by Confluence Technologies, Inc. is for general informational purposes only and does not constitute legal, regulatory, financial, investment, or other professional advice. It should not be relied upon as a substitute for specific advice tailored to particular circumstances. Recipients should seek guidance from appropriately qualified professionals before making any decisions based on this content.  

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About Confluence

Confluence is a global leader in enterprise data and software solutions for regulatory, analytics, and investor communications. Our best-of-breed solutions make it easy and fast to create, share, and operationalize mission-critical reporting and actionable insights essential to the investment management industry. Trusted for over 30 years by the largest asset service providers, asset managers, asset owners, and investment consultants worldwide, our global team of regulatory and analytics experts delivers forward-looking innovations and market-leading solutions, adding efficiency, speed, and accuracy to everything we do. Headquartered in Pittsburgh, PA, with 700+ employees across North America, the United Kingdom, Europe, South Africa, and Australia, Confluence services over 1,000 clients in more than 40 countries.

For more information, visit confluence.com