The asset management industry is one of the most highly regulated in a sector that already finds itself on the top end of the regulation scale. Many firms have established a global presence, meaning they are subject to regulation not only in their home jurisdiction but in all jurisdictions in which they operate.
It is no surprise therefore that for the majority of asset management firms, regulatory risk is top of their agenda. Between prudential and conduct rules, consumer protection and data protection regulations, KYC / AML, distribution and fiduciary requirements – monitoring compliance and keeping up-to-date with the requirements of so many regulators as well as with your own contractual obligations can prove to be a big strain on resources.
In addition to regulatory risk, operational risk poses a threat to a firm’s finances and reputation and areas such as cyber resilience, data protection and fraud, both internally and at key vendors, are real concerns in today’s environment.
Assessing and reporting on key risks and compliance obligations, a manual system or spreadsheets is not only time consuming but is itself adding another layer of risk; the information contained in these systems may not be up-to-date and maintaining version control can prove difficult. Consequently, creating reports from these sources can lead to inaccuracies, resulting in missed compliance obligations, inadequate risk controls and exposure to legal action, regulatory sanctions or reputation damage.
CalQRisk, the online Governance, Risk Management & Compliance software has developed a tailored solution for asset management firms. The system is user-friendly, easy to implement and is backed-up by our first-class support team.