Co-sourcing with confidence: A smarter model for regulatory resilience

Meeting the moment: A balanced approach to regulatory complexity

Investment managers today face rising regulatory complexity, tighter filing deadlines, and limited internal resources. Teams are leaner, workloads are heavier, and expectations continue to rise with evolving regulations like Form PF, AIFMD, and 13F-2.

Fully outsourcing these responsibilities can be desirable but may not be for everyone. Firms want visibility, control, and confidence that their obligations are being met accurately and on time. That’s where co-sourcing comes in.

Co-sourcing—a form of managed services that emphasizes collaboration and transparency—blends internal oversight with external execution. Investment managers retain strategic control and approval authority, while experts handle the operational work. The result is scalable capacity without sacrificing accountability—so your team can stay focused on what matters most.

Why co-sourcing is on the rise

Investment managers rethinking their approach to 
non-core functions

Firms are under pressure from all sides. Internally, they face:

• Headcount freezes, lean teams, and hiring constraints
• Knowledge loss due to key-person retirements
• Turnover in compliance and reporting roles

Externally, the burden is growing:

• Shifting regulatory deadlines (e.g., Form PF changes now due October 1, 
  and 13F-2 delayed to January 2026)
• More complex data requirements and compressed timelines

Co-sourcing addresses both sides of the equation. It gives firms flexible and reliable access to expert talent and technology without sacrificing control or visibility. In addition, it solves for talent gaps in complex or niche reporting, enabling existing teams to work smarter, not harder.

How it works

What co-sourcing looks like in practice

Co-sourcing can provide a workflow that offers transparency, minimized risk, 
and streamlined filings…

Data sourcing across fund admins/accounting systems

Preparation of filings using standardized models

Client reviews draft reports in the platform

Client approval of data or reports for submission, or submits directly

Client approval of data or reports for submission, or submits directly

…providing firms with:

1. Specialization
Providers bring experience across global and local regimes to prepare filings and manage data and reporting workflows

2. Visibility & control
The client retains platform access to monitor progress, review outputs,and approve deliverables

3. Continuity
Mitigates turnover risk and helps standardize across fund structures and geographies

4. Efficiency
Shared data models reduce duplication across filings and drive down cost

Real-world advantages

Why leading asset managers have already embraced 
managed services

The managed service team was incredible to work with. They provided top-tier client service and ensured a seamless transition to using the product for the first time.

Large global asset manager

Exceptional service on all levels. Great communication and support. Client support always available with outstanding knowledge.

Large global bank

Issues resolved in a timely manner and the final reports are error-free. Managed service for AIFMD reporting is very efficient.

European life insurer

The team has always been extremely hands-on and helpful during a very stressful part of the year for the firm.

US-based private equity manager

Confluence’s turnaround times on queries, knowledge of regulations and platform functionality provide a valuable service.

UK-based global asset management group

Sampling of feedback from Confluence Regulatory Managed Services.

Is co-sourcing right for your firm?

5 questions to ask before you engage

1. Do you rely on multiple fund administrators or data sources?
2. Are you juggling various reporting regimes (Form PF, AIFMD, 13F-2, etc.)?
3. Have you lost key personnel or faced compliance turnover?
4. Are you struggling to meet new regulatory deadlines or mandates?
5. Do you want to reallocate internal resources to more strategic initiatives?

If you answered “yes” to any of these, co-sourcing may be a good fit for your firm.

Why co-sourcing works—and keeps working—for investment managers

Firms that embrace co-sourcing gain peace of mind by standardizing non-core processes, improving efficiency, and preserving institutional knowledge—all while strengthening trust over time.

Confluence helps firms simplify their regulatory reporting with flexible, cost-effective services that combine powerful software and expert support. Our team can empower you to meet your obligations, supporting accurate and timely reporting, so your firm can focus on driving growth.

Start with the right connection

Discover how Confluence’s Regulatory Managed Services can empower your firm to reclaim valuable time, improve operational efficiency, and accelerate speed to market with confidence. Contact us to start the conversation.