Firms in the financial sector are investing heavily into compliance measures designed to prevent the kind of misconduct that could lead to costly reputational damage, according to Greenwich Associates.<\/p>\n
Based on surveys carried out in the second quarter, the firm reported that nearly 70% of asset management industry compliance officers expect their budgets to grow in the year ahead.<\/p>\n
It was also reported that annual spending on surveillance technology rose 17% in 2020, and is expected to rise by almost 25% this year to US$1.5 billion.<\/p>\n
These investments are aimed at preventing misconduct, to ensure that firms don’t “put their reputations and businesses at risk,” Greenwich said.<\/p>\n
The research firm suggested that global asset managers would be at risk of losing up to 20% of their assets under management, if they suffered either a major governance issue or compliance lapse.<\/p>\n
“Assuming 1% fees on roughly US$112 trillion … in global AUM that suggests nearly US$225 billion in fees are at risk in the asset management community alone,” the firm said.<\/p>\n
The firm also noted that the importance of compliance will only grow, as ESG standards become increasingly important to both investors and consumers.<\/p>\n
\u201cFor all financial service firms, promoting ethical behavior is key, but providing employees with a supportive compliance infrastructure is the crucial step,\u201d said Danielle Tierney, senior advisor in the Coalition Greenwich market structure and technology group.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investment in compliance is rising along with what’s at stake for asset managers<\/p>\n","protected":false},"author":147314,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2313,2312],"tags":[2690,2394],"yst_prominent_words":[1811,19442,11857,10735,9281,6371,5112,5062,5061,4039,2145,2144,2142,2138,6],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/430536"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/147314"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=430536"}],"version-history":[{"count":4,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/430536\/revisions"}],"predecessor-version":[{"id":430546,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/430536\/revisions\/430546"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=430536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=430536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=430536"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=430536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}