Cordium and Aite Group Survey Benchmarks Use of “Regtech” by Asset Management Firms

Private fund managers face a potentially overwhelming stream of compliance requirements and regulatory filing obligations, but technological solutions may assist managers in meeting those obligations and streamlining compliance processes. In 2017, Cordium and Aite Group surveyed executives in the securities and asset management industry to assess their use of “regtech,” which the authors of the study defined as “any technology that is targeted at supporting the compliance function.” Their white paper discussing the results of the study posits that, in order to manage regulatory compliance in an efficient manner, managers must “move from a reactive approach to a more proactive and strategic stance” that incorporates technological solutions. This article highlights the principle takeaways from the study. For additional insight from Aite Group, see “Report Identifies the Building Blocks of Institutional Credibility for Hedge Fund Managers: Operational Efficiency, Robust Risk Management, Integrated Technology and More” (Sep. 19, 2013); and “Report Maps Outsourcing Landscape for Hedge Fund Managers, Including Outsourced Services Offered, Trends, Goals, Drawbacks and Provider Profiles” (Nov. 15, 2012). For further commentary from Cordium, see our three-part series on electronic communications: “SEC Takes Steps to Drill Down” (Nov. 30, 2017); “Information Request List Provides Insight Into SEC Expectations” (Dec. 7, 2017); and “Six Key Issues to Address in Electronic Communication Policies and Guidance on Preparing for Future Scrutiny” (Dec. 14, 2017).

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