Future-Proofing Compliance

Author:

Evelyn Lynch
Senior Director, Managed Services at Confluence

Compliance is no longer a static function. Asset managers face evolving regulatory challenges that demand continuous vigilance. Managed services can help firms stay ahead of these changes without costly disruptions.

The Challenge of Evolving Regulations

Regulatory frameworks for asset managers are constantly shifting, driven by political, economic, and technological developments. Recent trends include:

Short implementation timelines: Compliance teams often face limited time to adjust to new rules. For example, amendments to Form PF have increased the frequency and complexity of filings, requiring firms to rapidly adjust their reporting processes.

Digital asset regulations: Digital assets are attracting heightened scrutiny, requiring asset managers to adapt quickly.

In-house compliance teams struggle to keep up: Staying informed and adapting to ongoing regulatory changes require constant training, specialized knowledge, and technology investments—often straining internal resources.

The Case for Managed Services: A “Perpetual Readiness” Approach

Managed services providers offer ongoing support that helps firms maintain compliance readiness. This proactive approach helps asset managers stay ahead of new rules without scrambling to meet deadlines. With managed services, firms have the opportunity to gain:

• a continuous, integrated process for compliance with the use of centralized data systems, which can help streamline reporting, reducing the need for ad-hoc and frequently duplicated data collection and reconciliation.
• proactive preparation for new regulations, since managed services providers actively monitor regulatory developments and adjust systems accordingly, helping firms avoid costly compliance gaps.
• enhanced data accuracy and reporting efficiencies using platforms that maintain up-to-date calculation methods and reporting templates, minimizing delays and errors.
• flexible scalability to meet evolving regulatory requirements and meet firms’ changing compliance needs without extensive internal investments.

The Technology Advantage

Managed services platforms integrate data governance frameworks, ensuring data remains accurate, accessible, and aligned with compliance standards. These solutions can automate complex tasks like regulatory reporting and trade surveillance.

Top-tier managed services have the potential to integrate AI to help improve data quality, enhance risk management, and facilitate faster reporting. According to a KPMG survey, 68% of financial services firms identified AI in compliance functions as a top priority.¹

Why Outsourcing Makes Sense

Outsourcing compliance functions through managed services can help asset managers reduce costs associated with building and maintaining in-house compliance infrastructure. By offloading routine compliance tasks, firms have the potential to improve internal employee productivity and minimize the risk of non-compliance through expert oversight and proactive readiness.

By partnering with specialized providers, asset managers can redirect focus toward core business activities like investment strategy and client service, while benefiting from scalable, flexible compliance solutions designed to adapt to future regulatory demands.

Preparing for the Future

As regulatory complexities increase, asset managers need solutions that deliver agility, reliability, and proactive readiness. Managed services offer a strategic solution for firms seeking to stay ahead of evolving compliance requirements without sacrificing operational efficiency or profitability.

By embracing managed services, asset managers can future-proof their compliance efforts and focus on what they do best—delivering value to clients.

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