SimCorp StrategyLab, an independent research institution sponsored by SimCorp, today released a white paper entitled: “Optimizing the IT response to UCITS IV and MiFID II: Equipping the buy-side to deal with regulation and the market.” The paper, which is written by global analyst firm Ovum, outlines how organisations must deal with the short-term regulatory requirements from an IT perspective, while positioning to cope with long-term demands.
Daniel Mayo, practice leader for Ovum’s global financial services technology team and author of the white paper, discusses in the piece how UCITS IV and MiFID II will impact firms’ IT strategy. The paper also explores how requirements are set to drive fundamental structural changes, such as further consolidation, in the investment management industry.
“Risk and compliance systems are key IT investment priorities for the buy-side,” states Mayo. “Regulatory demands from the likes of UCITS IV and MiFID II trigger such investments and place emphasis on flexibility and agility. The need for such adoption makes insourcing attractive to the buy-side.”
Additionally, the paper tactically discusses the demand for data transparency and compliance management induced by regulatory requirements that will drive the need for better data management on an enterprise level. The paper concludes by recommending that firms prepare for these broader structural demands, and look at regulation as an on-going issue, rather than a temporary one.
Lars Falkenberg, VP of operations at SimCorp StrategyLab, says, “When it comes to data management initiatives, firms shouldn’t think at the product level, but instead take an enterprise approach. The ever-changing regulatory environment is bound to impact not only buy-side institutions’ product strategy, but also IT strategy as well. Looking at IT from an enterprise perspective is crucial for firms who want to prepare not only for the short-term but also, more importantly, the long-term implications of the regulatory wave.”
To download a copy of “Optimizing the IT response to UCITS IV and MiFID II: Equipping the buy-side to deal with regulation and market,” please visit http://www.simcorp.com/Knowledge/White-papers/Download-the-UCITS-IV-and-MiFID-II-StrategyLab-white-paper.
Enquiries regarding this announcement should be addressed to:
Lars Falkenberg, VP of Operations, SimCorp StrategyLab, +45 26 30 01 27+45 26 30 01 27.
About SimCorp StrategyLab
SimCorp StrategyLab, an independent research institution sponsored by SimCorp, carries out extensive research in the investment management industry to identify and suggest ways to meet challenges within risk management, cost control and growth opportunities and to share best practices. The research programme is carried out in close collaboration with internationally recognised academics and established industry experts.
Since 1971, SimCorp has been providing investment and portfolio management solutions and services to the world’s leading investment managers, asset managers, fund managers, fund administrators, pension funds, insurance funds and wealth managers. SimCorp’s world-class software provides global financial organisations with the tools they need to mitigate risk, reduce cost and enable growth. SimCorp is a global company, regionally covering all of Europe, North America and Asia Pacific. Listed on the NASDAQ OMX Copenhagen, SimCorp is dedicated to supporting the global investment management industry, its clients and its investors.