Regulation woes disrupt asset owners’ slumber
Australian asset owners are tossing and turning at night as they try to keep up with and meet regulations of all sorts, according to research.
The BNP Paribas ‘Asset Administration and Custody Review' showed regulation is keeping up two-thirds of the respondents (67 per cent) up at night.
About 87 per cent said their costs had gone up in trying to meet those regulations while many said they could not pass those costs on to end investors.
Around 8 per cent do not even know how regulation will hit their cost base, while over half are tackling regulation with their own resources and up-skilling their teams.
A third of respondents (31 per cent) worry about how to cut costs further.
Second on the list of concerns was meeting performance targets, with 45 per cent losing sleep over it.
Staff management and resourcing issues worried 32 per cent.
"The most concerning operational issue is risk management — improving risk analytics and improving the risk-return profile of their portfolios — which worries over two-thirds of respondents," managing director Peter Baker said.
"More than half (53 per cent) want a better understanding of their investment risk, with two out of five (42 per cent) not satisfied with their risk reporting."
Only 5 per cent said nothing concerned them.
AUTHOR
Malavika Santhebennur
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
