A new effort by President Obama to tighten cybersecurity at financial institutions and other businesses could help light a fire under some firms that have historically been slower to react in the wake of a data breach and help financial institutions dealing with a tangle of confusing state laws.
For vendors in the data security realm serving asset managers, banks and other financial institutions, the Morgan Stanley data breach incident serves as a reminder of the greater roles they now have.
Defense in the cyberworld is difficult. The invisible duplication of information is intrinsic to computerized systems. Adding to this complexity, we now use global-spanning IT systems with numerous known and unknown dependencies.
The top regulator of mutual funds, private equity and hedge funds at the U.S. Securities and Exchange Commission will step down later this month.
BlackRocks chief executive officer has warned the retreat of banks as counterparties in credit will create severe volatility. Regulators are preparing new rules for mutual funds to ensure that a sudden stampede out of funds wont result in a downward price spiral that threatens the financial system.
While IT budgets at buy-side firms have not fully recovered from the cutbacks of the Great Recession, front-office demands keep growing in quantity, complexity and required speed of response.
During the crisis of 2008, service providers faced an environment in which they saw their clients' assets decline sharply.
Executives at mutual fund companies, asset management companies and support providers rated client reporting--which included any reporting that is created for the purpose of distribution to clients--as their top challenge followed closely by risk management in Money Management Executive's third annual Operations Survey.
Fund sponsors have long debated the relative merits of building, buying or outsourcing fund administration technology. As sponsors face more and more data-driven demands from regulators and investors, there is increased pressure to adopt new efficient technologies for fund administration process such as expense payments and budgeting, regulatory reporting and financial reporting. While there is no one-size-fits-all answer to the "build, buy or outsource" question a mix of cost pressures, resources, reporting requirements and technological advances have tipped the balance in favor of "buy" and "outsource."
These are stressful times for the mutual fund industry. An obvious statement, but one authored by a colleague ten years ago. Even more interesting is that the trends cited then are the same concerns that we hear from clients today. So what has changed?