Regulation, automation and financial crime are top priorities for investment managers in 2015, according to research commissioned by the Society for Worldwide Interbank Financial Telecommunication (Swift).
The Operational Challenges Facing Investment Managers in 2015 report also highlighted a lack of straight-through-processing and pressure resulting from ‘know your client’, anti-money laundering and sanctions screening.
Carried out among six of the ten largest investment management firms, the Swift report aimed to understand the operational challenges facing the sector.
It shows that while investment managers are looking for solutions to improve efficiency, there are also concerns about the risks of outsourcing as investors and regulators become preoccupied with risk mitigation.
The report also identified inefficiencies in corporate actions processing and in the post-trade area, with a lack of standardisation noted as a key issue.
Collateral management and fund distribution support were two areas highlighted for further improvements in 2015, with a focus on minimising cost and risk.
“There are visible pain points that operations executives will need to address in 2015 and beyond,” says Fabian Vandenreydt, head of markets management, Innotribe and the Swift Institute at Swift.
©2015 funds europe