thewealthnet     About Us    |    FAQs    |    Contact Us
 
  Search
 
     
  Advanced Search       RSS Feed  twitter  linkedin 
Welcome to thewealthnet    |   Europe, Middle East & Africa Get The App   |   Login
  Sun 15th Jul 2018  |    Make this my homepage  
Subscribe now!
Credit Cards Accepted
World Map
    
Regtech will reduce wealth management compliance budgets, says new research
02/03/2018 , News Team

Wealth managers will find themselves dedicating much of 2018 to adopting new compliance requirements, incurring increases in operating costs. However, regtech will make the process more cost-efficient, according to data and analytics company GlobalData.

In Europe, MiFID II entered into force in January 2018 and the General Data Protection Regulation will be effective from May. The US financial services industry is getting ready for the Fiduciary Rule, which is due to enter into force in 2019. Across the board, as of January 2018 all countries that signed the OECD’s agreement on automatic exchange of information must now be fully compliant with the Common Reporting Standard and report on accounts held by their residents.

Consequently, regulation has weighed heavily on wealth managers’ operating costs in the past few years. Wealth of Opportunities II, a joint report by the British Banking Association and the Wealth Management Association, confirms operating costs increased steadily up to 2015, mainly because of increased spending to cover compliance requirements. Whilst GlobalData’s 2017 Global Wealth Managers Survey found that 75.3 percent of wealth managers globally regard local regulatory changes as a big concern for their business.

“The two associations estimate that technology investments have been beneficial, helping the industry reduce its overall costs by 3 percent over 2016 compared to 2015,” said Silvana Amparbeng, wealth management analyst at GlobalData.

“This is especially true for compliance costs; as per our survey data, over half of wealth managers believe that cooperation with regtech will reduce compliance costs. Of course, differences apply across markets. Asia Pacific is the most willing to implement regtech solutions going forward, while North America is less enthusiastic. Nonetheless, considering the busy year ahead in terms of regulatory changes, wealth managers would do well to consider partnering with regtech companies. Smaller players with limited resources to dedicate to compliance will find outsourcing these tasks to be particularly cost-efficient.”
 

Share with Linkedin Share with Twitter
 RATE THIS ARTICLE
Poor   Average   Good   Excellent
thewealthnet archives contain 49,636 articles dating back to 1997,making it the largest single source of information on the wealth management industry world-wide. To search for more articles, please click here.

 

© This article originally featured on thewealthnet. It is protected by international copyright law. If you copy this article illegally, you will be liable to prosecution. All rights in and relating to this article are expressly reserved. No part of this article may be reproduced, stored in a retrieval system or transmitted in any form or by any means without written permission from the publishers.

 
    Latest Headlines:    by Topic | All News
 
  Advertise   |   Contribute   |   Press Release   |   Terms of Use   |   Privacy   |   Contact Us Copyright Pam Insight Ltd., All Rights Reserved