Regulatory Scrutiny Drives IT Spending
The TowerGroup issued a report examining the Top 10 technology priorities for investment management firms. While concerns over meeting a new spate of regulatory pressures is the industry's undisputed number one business driver, the a focus on the clientIncreasing pressures from both regulators and clients will top the list of business concerns among US investment management firms over the coming year. New research from TowerGroup, an advisory research and consulting firm focused on the global financial services industry, identifies the Investment Management industrys Top 10 business drivers. The report also pinpoints the Top 10 areas of information technology (IT) that these drivers have made a priority. "The industry is in just the preliminary phases of what will likely become a sustained period of regulatory scrutiny," said Tim Lind, senior analyst in the Investment Management practice at TowerGroup and co-author of the research. Lind continued, "Even despite inquiries into market timing, application of mutual fund breakpoints and allegations of late trading, the prevailing wisdom on regulatory initiatives had said, This too shall pass. Today, prevailing wisdom now holds, Regulatory scrutiny is here to stay."
Lind added that if its not the regulators breathing down the neck of asset mangers, it will be their clients. "The demands for transparency and the fear of risk to their reputations will drive the IT spending habits of buy-side firms for many years to come," he said.