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Fund firms facing major compliance headache
by Dylan Lobo on Oct 28, 2013 at 13:19
UK asset management bosses unanimously agree that a compliance skill shortage is having a negative impact on their business and will continue to worsen.A PwC survey of asset management compliance heads revealed 100% felt there was a lack of appropriately qualified staff in the market. The majority said the trend to continue over the next two-three years.
This is especially worrying given the growing regulatory demands on the industry, with 95% of firms expecting pressures to escalate over the period. A total of 35% do not feel their compliance function is in position to cope with future demands.
PwC head of asset management regulation Amanda Rowland outlined the urgency of the situation. ‘Asset managers need to respond to this, and fast.
'The changing regulatory landscape means the responsibilities placed on the compliance function are constantly increasing and firms will need to have access to a qualified pool of talent in order to meet these needs.
‘Failing that, they need to consider a structure which enables them to perform their core essential role in the business, finding alternative solutions to cope with the remainder.’
Rowland believes one of the best ways the industry can address this problem is by prioritising functions within compliance departments.
‘Firms need to look at their compliance business model, determine what the core function of compliance should be, its essential purpose in the business if you like, and then focus the limited resources on this,’ she said.
‘For the remainder of activities they should consider whether they could more appropriately lie elsewhere, whether they can outsource or if a separate ring-fenced department in another part of the business could take on more process-driven functions.’
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