Solving the Compliance Conundrum

Author:

Evelyn Lynch
Senior Director, Managed Services at Confluence

As regulatory demands continue to grow, asset managers face increasing pressure to meet complex compliance requirements. The rising regulatory and data complexities, coupled with limited time and staff to meet tight reporting deadlines, are straining internal resources. To address these challenges, many asset managers are transforming obstacles into opportunities by turning to managed services for compliance support. Outsourcing compliance functions helps improve efficiency, reduce costs, and mitigate risk. Here’s how.

As regulatory demands continue to grow, asset managers face increasing pressure to meet complex compliance requirements. The rising regulatory and data complexities, coupled with limited time and staff to meet tight reporting deadlines, are straining internal resources. To address these challenges, many asset managers are transforming obstacles into opportunities by turning to managed services for compliance support. Outsourcing compliance functions can help them improve efficiency and reduce costs. Here’s how.

Key Benefits of Outsourcing Compliance

Managed services providers deliver expertise and tools that can streamline processes, frequently at a lower cost. By leveraging automation and advanced reporting tools, managed services providers can improve reporting speed, accuracy, and reduce administrative burdens.

In addition, the provider’s compliance specialists offer expertise to manage evolving regulatory requirements. With regulatory tasks handled externally, asset managers can focus more on investment strategy, client service, and growth initiatives rather than reporting obligations.

Addressing Key Regulatory Challenges

Asset managers face numerous regulatory hurdles that managed services can help address. Complex data requirements, such as those found in Form PF, demand detailed reporting on portfolios, risk exposure, and liquidity. Managed services streamline data collection and accuracy.

As regulations continue to evolve, with new requirements such as the recent updates to ECB investment fund reporting, managed services providers play a crucial role in helping their clients stay ahead. With tight compliance timelines, managed services providers help accelerate data aggregation, validation, and reporting to meet deadlines. Data accuracy and security are also improved through system integration, automation, and robust security protocols.

Replacing Compliance Complexity with Efficiency

Managed services provide asset managers with specialized expertise, cutting-edge technology, and ongoing support. Automated reporting solutions can help facilitate faster, more accurate submissions, while AI-enhanced management tools can identify and address compliance risks efficiently. By adopting a proactive compliance readiness approach, managed services providers help firms stay ahead of regulatory changes before they take effect.

Achieving Compliance Success Through Managed Services

Selecting the right managed services provider is crucial for asset managers seeking to improve compliance outcomes. Providers with industry expertise, strong technological capabilities, and a proven track record can effectively integrate with existing systems while ensuring accuracy and meeting critical deadlines. By outsourcing compliance to experienced providers, asset managers can reduce risk, improve efficiency, and focus on growth—positioning themselves for long-term success in an increasingly complex 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.

For more information, visit confluence.com