Innovation ‘hampered’ by regulation, say asset management CEOs

InnovationAsset managers see their ability to innovate 'hampered' as a result of regulation, which is also driving up operating costs, at a time of increased uncertainty.

Half of the asset management chief executive officers surveyed by consultancy PwC say coming up with innovative products is increasingly difficult, and eight in ten expect operating costs to rise.

Regulatory changes and the response of governments to fiscal deficits as well as debt burdens are a great source of uncertainty.

Still, 97% of asset management CEOs are confident that their revenues will increase over the next three years.

PwC’s annual CEO Survey includes responses from 123 asset management CEOs in 37 countries.

On a more positive note, half of those surveyed say the global economy will improve over the next 12 months, compared to 19% last year.

“Cost reduction is still important but it’s becoming less of a priority as asset management CEOs make plans for growth,” Paula Smith, UK asset management leader at PwC.

“It’s interesting to note that they see the best opportunities for growth in the United States and Western Europe. But regulation clearly remains a strong headwind.”

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