CPO-PQR, Enhanced Fund Reporting, Money Market Reform changes in the U.S. alone, not to mention AIFMD and others originating in Europe– the list of current reporting requirements and potential forthcoming regulation goes on and on. As I continue to put myself in the shoes of our clients– fund administrators, advisers and asset managers–the alphabet soup of reporting requirements combined with their increased frequency, leaves me with the same sense of overwhelming exasperation and confusion. One simple question continues to cut to the heart of the matter and is being asked by fund administrators and adviser alike, “How, in an environment of staff reductions and offshoring, can we support the increased quantity and frequency of reporting that is being required of us?”
Does it mean more and more late nights, more Excel sheets and more brute force to get the work done? Or are there automated solutions that provide a more efficient, proactive and scalable model? These are the questions that keep our clients up at night and keep me thinking of the ways to help them.
The 2014 Mutual Fund and Hedge Fund regulatory outlook is full of new potential regulations, requirements and expectations. An article I read by the Deloitte Center for Financial Services titled 2014 Mutual Fund Outlook – Championing Growth – Innovating Around the Edges really began to put that sense of confusion and exasperation around the possibilities that my clients will be facing into focus.
Fund Administrators, advisers and asset managers need to maintain an agile and proactive nature to stay ahead of potential regulatory requirements, while at the same time balancing what aspect of those requirements may be implemented, and without negatively impacting the day to day business activities required of them. Not only will regulation interpretation be at the forefront of discussions, but most importantly, what solution direction will be taken to solve new reporting challenges. These discussions must contain three key areas of focus: implementation, execution and frequency. And regulatory and compliance teams should be asking, “Can the reporting be executed on and completed successfully at the frequency required (which looks more and more like monthly as opposed to quarterly)?”
More frequent reporting in a manual environment only adds to the risk profile of asset managers and fund administrators in today’s complex regulatory environment. Confluence knows that reducing risk is always at the forefront of our clients’ minds. Our Unity® and Unity NXT™ solutions, as well as our consulting services can help provide that peace of mind in an ever changing and complex regulatory environment. Learn more at https://www.confluence.com/en-us/solutions/?Overview-5 and https://www.confluence.com/en-us/services/?Overview-1).