Global

Details

  • Industry: Financial Services, Investment Management, Private Equity, Real Estate
  • Type: Survey report
  • Date: 10/11/2013

Looking to the future: Increased investment and activity planned 

Looking to the future
While all evidence points to the fact that the industry has already invested significant capital, time and resources towards achieving regulatory compliance around the world, it is also clear that more will be required before funds and their managers can be confident of their compliance processes and solutions.

According to our survey, hedge fund managers are convinced that the costs and resources associated with regulatory compliance are only set to increase over the next five years. Almost nine out of ten respondents (89 percent) said that they expected their regulatory compliance-focused technology spend to increase, while only 10 percent suggested that it would stay the same.


At the same time, respondents were almost unanimous in stating that their use of outsourced or third party advisors and consultants to support their compliance strategies would either increase (64 percent) or stay the same (32 percent) over the next five years. Not surprisingly, the smallest firms (those with AUMs of below USD250 million) were almost 10 percent more likely to suggest that they anticipate increasing their use of external advisors over the next five years, while mid-sized firms are most likely to suggest that their use of consultants will remain steady.


In particular, respondents indicated that they would be most likely to increase their use of legal advisors (cited by 84 percent of those who indicated that their use of service providers would increase overall) and regulatory advisors (cited by 80 percent of the same group). More than half (52 percent) also suggested that they would increase their use of tax advisors, demonstrating that managers have started to be more aware of the tax implications of regulatory and operational changes and are actively seeking solutions in response.

 

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