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Operations challenges for APAC asset managers

Mon, 08 Jun 2015 11:17:50 GMT

The global capital markets have been going through a turbulent recovery phase in the last few years. Asia-Pacific is no exception to this rule and the region’s asset managers will come up against a set of operational issues and constraints to be addressed in a difficult market environment.

Addressing regulatory pressures, be they from within their own jurisdiction, or from without, will be paramount in the mind of asset managers. It is important for managers to consider the various KYC and AML requirements internationally and how they affect their respective jurisdictions. This is not an isolated enterprise, and must be undertaken along with the task of upgrading the operational capabilities, and if required, acquiring the necessary platforms or systems to address these concerns. As much as possible, asset managers must try and use a comprehensive solution, underlining a desirable holistic approach to the issue.

Most asset managers will meet their various operational requirements by using a mix of in-house and third party services. Outsourcing is nothing new to the industry, but can still be challenging. It has its own set of risks which need to be considered and mitigated for successful operations. Firms have to ensure a strong integration of the outsourced services with the in-house operations.

Another challenge is the complexity of products being utilized by asset managers to meet their clients’ needs. With more choices available and structured products becoming popular again in leading Asian jurisdictions, firms have to ensure that their risk management systems are capable of handling greater product complexity.

These are only some of the issues asset managers need to keep in mind, and overall they would be well served with taking a more holistic approach to operations management, and ensuring they make sufficient investment in their systems to help them handle the various challenges.

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