How Data Complexity is Reshaping Regulatory Reporting for Asset Managers

Author:

Evelyn Lynch
Senior Director, Managed Services at Confluence

Regulatory compliance isn’t just about following rules—it’s also about managing data. As asset managers navigate increasingly complex regulations, they face growing challenges in data management, system integration, and timely reporting. With global regulators demanding greater transparency and faster filings, firms have no choice but to adapt. Here’s how data complexity is reshaping regulatory reporting and what asset managers can do to stay ahead.

Regulatory Reporting is Data-Intensive

Compliance reporting is no longer just about submitting forms; it’s about increasing data accuracy, accessibility, and integration across multiple platforms. Regulatory frameworks require asset managers to collect and process vast volumes of complex data. For example, Form PF filings demand granular data on leverage, liquidity, and exposure, with increased frequency and detail following recent SEC amendments.

This data-driven landscape amplifies the need for asset managers to efficiently manage data flows in order to have timely submissions.

Siloed Systems Create Compliance Challenges

Many asset managers operate with fragmented data systems, often built over years to serve different business functions. As a result, reconciling data across disparate platforms can become a significant challenge.

Portfolio management systems, for instance, may capture one set of data while risk management platforms collect another, creating inconsistencies that increase the risk of errors. Legacy systems often lack integration capabilities, limiting firms’ ability to extract and consolidate accurate data for compliance reporting.

With regulatory bodies tightening deadlines and increasing scrutiny, these data silos put firms at risk of non-compliance and reputational damage.

Data Accuracy is Critical

Errors in regulatory filings can result in fines, reputational harm, and operational setbacks. Asset managers face challenges such as data discrepancies from manual entry and conflicting data points between systems, these combine to introduce risks in audit trails and compliance.

For example, Form PF filings demand precise calculations of fund exposure and liquidity. Without accurate data integration and validation processes, firms may inadvertently misreport, potentially drawing regulatory scrutiny.

Managed Services Enable Better Data Management

For asset managers struggling with data complexity, outsourcing regulatory reporting through managed services can offer a more strategic solution. Managed services combine specialized expertise with advanced technology platforms, delivering streamlined data management processes that help mitigate compliance risk.

Key benefits of managed services include:

• Centralized data management: Managed services can provide a single source of truth, helping to improve data consistency and enhance the accuracy of regulatory filings.
• Automated reporting: Managed services can efficiently extract, validate, and compile data to meet compliance timelines and reduce the risk of manual errors.
• Proactive compliance readiness: Managed service providers monitor regulatory developments to keep data models and reporting processes current.

Future-Proofing Compliance with Managed Services

By partnering with managed service providers, asset managers can offload complex data challenges, giving them the opportunity to reduce internal resource strain. These providers also help firms minimize compliance risks with enhanced data accuracy and audit trails, and adapt to evolving regulatory requirements through ongoing platform updates and expert guidance.

With regulations growing more intricate and data demands increasing, managed services can provide a proactive solution for asset managers seeking to streamline operations, reduce costs, and mitigate risk. By embracing managed services, firms can more easily shift their focus back to core investment strategies and client relationships while remaining fully compliant in a fast-changing regulatory environment.

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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.

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