Research conducted by TABB Group and SunGard – which surveyed 100 boutique asset managers around the world – saw 42 per cent of firms citing regulatory complexity as the “major focus”.
TABB Group and SunGard also found boutique firms remained “most concerned” about consumer protection laws, with 65 per cent reporting it had a “high to moderate effect” in terms of business operation.
“New regulations such as anti-money laundering regulations and the financial transaction tax were highlighted across the globe as growing areas of concern for boutique firms,” a statement from TABB Group and SunGard said.
SunGard asset management business executive vice president Ed Lopez said regulatory constraints “may yet play into the hands” of boutique firms as niche funds continue to attract capital from investors seeking outsized returns.
“Fully automating processes that deliver the necessary transparency, accountability and efficiency will help boutiques survive in today’s competitive environment,” Mr Lopez said.
“The new era of boutique asset managers will not only be a more selective one, but with the right partnerships it will help empower investment decisions and improve controls to better tackle growing regulatory requirements,” he said.
TABB Group senior analyst Rebecca Healey said for boutique firms to succeed it is no longer just a case of their “growing assets and returns”.
“Increased transparency, operational efficiency and the ability to deliver stable, risk-adjusted returns, within a resilient infrastructure, will be critical for the new boutique asset managers to help ensure operational stability,” Ms Healey said.
“Whether efficiency comes from internal technology, managed services or outsourcing, our research finds these solutions will enable and empower boutiques to focus on their core strengths," she said.
