Asset managers are further centralising their global compliance functions in order to bring consistency and efficiency in the face of increasing pressure from both local and global regulators, according to a survey of chief compliance officers (CCOs) by PwC.
The UK is a good example, says PwC, with the ongoing FCA market study forcing firms to re-evaluate their business models as a focus on products and pricing becomes more prominent.
The sector has seen increasing compliance budgets since the financial crisis, but half of the CCOs interviewed by PwC expect their budgets to plateau, reflecting increasing cost pressures in the industry.
As regulators deal with MiFID II and contingency planning for Brexit alongside a shifting focus to providing value for the customer, this stalling in budget means compliance functions are re-evaluating the skilsets they need.
As a result, one third of the CCOs surveyed by PwC say they are hiring compliance staff from the sell-side who they feel are better able to challenge and oversee the necessary changes in the business
Amanda Rowland (pictured), asset management regulation partner at PwC, says: “We continue to see global compliance functions evolve in response to ever increasing regulatory demands.
"These demands, coupled with the current cost pressure in the sector mean we are likely to see ever greater focus on strategic and innovative change to the way global compliance functions operate in the future.”