Knowledge gleaned now, in the early days of the CSDR penalty regime, will help firms to make sense of a complex regulation journey. By Ben Pumfrett, Head of Middle Office Product and Dean Rook, Head of Middle Office Operations at RBC Investor & Treasury Services.
RBC Investor & Treasury Services is pleased to be a partner in this Funds Europe survey report, Navigating the CSDR Landscape. The CSDR penalty regime has been in effect for more than six months and we are seeing early indications of how it has been implemented, such as lack of market readiness and technology challenges and limitations.
It is evident that the penalty regime under CSDR poses a financial impact if both buy and sell side firms do not handle requirements in a timely and efficient manner. However, early learnings show that it is a complex regulation with many layers – which this report explores.
The industry is also dealing with current market trends such as margin compressions due to inflation and rising costs, rapidly evolving technology and the transition to T+1.
An outsourced middle-office transaction management service is allowing some market participants to leverage scale and expertise with these operating models and to better navigate market/regulatory change, including CSDR and future changes.
By being well prepared, firms continue to increase operational efficiencies, avoid CSDR-related penalties and focus on their core competencies – increasing returns for their underlying investors
As both a thought leader and solutions provider in the asset servicing space, RBC Investor & Treasury Services understands the potential hesitation and challenges firms may experience, and that choosing the right partner can make all the difference in their regulation journey.
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