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Fund administrators face struggle
27 August 2013
Regulation and globalisation are major concerns, finds Confluence
Fund administrators are struggling to meet the demands that increasing regulation and globalisation in the financial services industry is placing on back offices, a survey by Confluence has found.
The firm surveyed more than 170 individuals across financial services industry and found that given ever higher levels of reporting, transparency and regulation, almost a third (29%) of administrators were concerned about the lack of automation of back office functions.
Confluence found a quarter (24%) had concerns about data integrity, while one in 10 (12%) were concerned about reporting errors.
Jack Smith, chief operating officer, Confluence, said: “As asset managers face more and more data-driven demands from regulators and investors, fund administrators need access to new efficient fund administration technologies.
“In the current global and regulatory environment, fund sponsors must provide instant, customised data to multiple stakeholder groups including investors, regulators, board members and management.”
They survey found that the increasing globalisation of the financial services industry is creating extra pressures and stresses on back offices. creating standardised reporting formats for executive management, while also retaining the flexibility for local reporting requirements, was the highest-rated issue for over a third (35%) of administrators.
Almost a fifth (18%) said they had difficulties complying with multiple regulatory regimes at the same time, while almost one in ten (8%) said they faced challenges in administering funds across multiple timezones.
To meet reporting requirements, fund administrators are looking to automate processes where possible. Confluence found the top priorities were regulatory reporting (25%); expense payments and budgeting (24%); financial statement reporting (20%); and performance reporting (20%).