NORTHERN TRUST SURVEY: MAJORITY OF FUND MANAGERS SEE UPCOMING REGULATORY ENVIRONMENT DEMANDING MORE TIME
ASSET SERVICERS OFFER ENHANCED AND INNOVATIVE CLOUD-BASED TECHNOLOGIES TO HELP EASE ADMINISTRATIVE BURDEN
LONDON, FEBRUARY 15, 2017 —
Close to 70 percent of fund manager clients, prospective clients and consultants attending a Northern Trust (Nasdaq: NTRS) event* on regulation believed that the upcoming regulatory environment would demand more of their time, compared with time spent over the past year.
Despite the increasing amount of time required to comply with regulatory compliance, the majority of those surveyed (60 percent) had not considered utilizing technologies such as Blockchain, big data, robo advisors and cognitive computing, to aid regulatory compliance.
“Whilst the time spent complying with new regulation remains one of the greatest challenges for fund managers, it is not surprising to find many fund managers grappling with the costs and additional infrastructure investments required to implement new technologies,” said Robert Angel, global head of regulatory solutions, Northern Trust. “Asset servicers, through their use of innovative and cloud-based technologies and scale are however well positioned to support fund managers.”
Northern Trust most recently enhanced its regulatory risk reporting capabilities using cloud based technology from StatPro’s latest analytics platform, Revolution. The enhancement increases Northern Trust’s ability to provide ex-ante risk analytics for evolving regulations such as the Undertakings for Collective Investment in Transferable Securities (UCITS) and helps improve performance, functionality and flexibility.
“By leveraging StatPro’s technology and latest analytics platform, Northern Trust can better support the increasing risk-based regulatory demands our clients face,” said Ian Castledine, global head of investment risk & analytical services product management, Northern Trust. “Our range of best-of-breed risk reporting tools provide support for the Value-at-Risk (VaR) approach for UCITS. This helps asset managers demonstrate a commitment to risk management expertise and fund transparency as well as gain greater portfolio oversight.”
Northern Trust’s Global Fund Services business provides depositary, custody, fund administration, investment operations outsourcing, and regulatory solutions to investment managers across the globe and across the spectrum of asset classes. It hosts regular events such as the recent one in London as part of its ongoing strategy to understand and remain close to its clients.
*The Northern Trust Annual Depositary and Regulatory Conference was attended by close to 100 fund manager clients, prospective clients and consultants in London during October 2016.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 22 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2016, Northern Trust had assets under custody of US$6.7 trillion, and assets under management of US$942 billion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.