Managing Change in the Funds Industry
Managing Change in the Funds Industry
The fund administration sector has undergone transformation in recent years as the industry responds to the competing pressures of cost and regulation within an environment of changing needs. With the fund administration function almost completely outsourced throughout the industry, asset managers and third party administrators (TPAs) need to ensure that relevant resource can be deployed to manage the following types of change effectively:
Internal/External Audit Reviews – regulators have enforced higher levels of due diligence over TPAs, leading to more regular audit reviews of processes, internal controls and risk management techniques. Interim specialists can be utilised by the TPA or the fund manager to carry out such a review or to conduct a pre-audit in advance of full inspection.
Regulatory Change – FATCA and AIFMD are examples of recent regulation where contract specialists have been hired throughout the industry to introduce new requirements and implement compliant frameworks.
New Business – material changes in business levels can create growing pains for both manager and TPA. Contract project managers and analysts can bring order to a potentially uncontrolled situation and successfully on-board business.
Business Efficiencies – managers and TPAs have used various methods to achieve “lean and mean” status since the last financial downturn. Industry contractors have played key roles in managing initiatives such as offshoring, function relocation, process enhancement and system improvement.
Interim Management – most contract consultants have an operational as well as project based background and are often able to step into vacant senior management roles at short notice with minimal learning curve.
If you would like to discuss the use of specialist contractors in your business, please contact Steve Johnson in confidence.