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A number of deeply rooted forces are driving change within the Asset Management industry. The pace and complexity of this change is ever-increasing through economic uncertainties and the evolving regulatory landscape, shaping the future career of the Asset Manager.
What are these three key drivers of change and what impact are they likely to have on the Asset Manager?
1. MiFID II and transparency
The complex compliance environment is proving challenging, having a profound effect on the regulatory framework for the European Asset Management industry. From 2017, MiFID II will affect most global firms, most notably in how they communicate with clients, reward advisors and distribute products. The sharing of this information and gaining trust in a volatile market will be yet another challenge faced by Asset Managers alongside more cohesive reporting measures to tackle transparency of the numbers.
2. Strategic M&A activity
Asset Management firms see M&A activity as a route to quickly, efficiently and economically expand their business. With traditional organic growth strategies being costly/ timely and valuation premiums of many firms being particularly attractive, the rise in M&A activity will be a key driver of change within the Asset Management sector this year.
3. Shift towards organic growth
Focus is shifting towards utilising existing resources and current clients. Marketing and client service departments are implementing a more targeted and personalised approach to asset management. Advisors are customising their messages for specific market segments, particularly as women are playing a predominant role in global boardrooms, controlling a greater proportion of financial assets and decision making.
So how will the role of the Asset Manager adapt in response to these drivers of change? It is imperative that Asset Managers ensure new practices within the changing regulatory landscape become part of a ‘new business as usual’. Embedding approaches to identifying, analysing (strategic implications of new regulations) and preparing for drivers of change.
The success of the Asset Manager amongst key drivers of change throughout 2016 and beyond will depend on maintaining a thorough infrastructure to support regulatory, investor and market expectations. Those who are the quickest to adapt and exploit new opportunities presented from drivers of change will avoid damages from the effects of regulatory change.
New Year, New Role? If you’re interested in advancing your career within Asset Management, contact Craig McNicol – Associate Director Risk Management, Quants and Banking Change - 0207 398 4042 Craig.McNicol@ojassociates.com
Alternatively, visit www.ojassociates.com to explore new opportunities.