Regulation

Regulation prompting firms to leverage tech for Luxembourg growth, says survey

When asked to identify the top two regulatory initiatives influencing the funds business, 81 per cent of respondents flagged FATCA, according to a survey of Luxembourg mutual fund firms conducted by Bonaire Software Solutions.

 
UCITS IV and AIFMD tied for second at 24 per cent each. According to 77 per cent of respondents, these regulations are prompting firms to deliver greater transparency to investors.
 
“Due to the Luxembourg and general EMEA’s strong funds business – regulators, custodians, administrators and firms have a deep understanding of the industry and are quick to adapt global regulatory initiatives for regional application,” says Chris John, chief executive of Bonaire. “Firms looking to increase business in the area must invest in the infrastructure required to demonstrate the transparency and accuracy regulators and investors demand.”
 
Of the fund firm representatives polled, 86 per cent are leveraging technology to spur additional business in the region. Respondents indicated that client reporting (60 per cent), regulatory compliance (55 per cent), and data management (45 per cent) ranked among the top concerns being addressed by technological advancements.
 
“Solid data management and the ability to offer due diligence and verification procedures in this regulatory environment is clearly a business differentiator,” says John. “At Bonaire, we’ve found that the power to automate invoice and fee validations to investors and deliver strong data management is no longer a nice-to-have for fund firms, but instead a must-have. As our survey numbers show, the demands of the Luxembourg market align with the global trends we are seeing in the funds space overall.”

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