SECTION 1

THE REGULATORY REPORTING ENVIRONMENT TODAY

1.1 ROUNDTABLE: Maximising outsourcing capabilities across global jurisdictions

Outsourcing of middle and back office functions are becoming commonplace in the financial industry, and shareholding disclosure is no different. When operating in one jurisdiction, the challenge is not so great, however, when funds have an international or global presence, coordination can become more complex. This discussion covers the ways that asset managers coordinate reporting across different jurisdictions, how to harmonize providers in order to maximize efficiency and reduce costs, the rigours of the selection process, and the fail-safes that are put into play in order to withstand and prepare for audits.

Moderator:
- David Grana, Head of Production, Clear Path Analysis
Panellists:
- Gaurav Chandra, Product Manager, AxiomSL

1.2 INTERVIEW: Navigating through the complexities of regulatory reporting in the APAC region

The sheer growth potential of attaining assets under management makes the APAC region highly desirable. But to operate across the region comes with its challenges, including operating in different languages, using a variety of different platforms for reporting, navigating through a plethora of different regulations, and sorting through a universe of outsourcing providers – some of which may be inconsistent in quality of service.

Summary Points:
- Some of the bigger challenges today are coming from the effects of Brexit and what falls under which regulation
- It is a great deal of work to sieve through the copious amounts of data to ensure that trades are reported correctly
- Today, spreadsheets have been replaced by technology platforms, which ensures quality of data and saves a lot of time
- The technology in use still relies on humans to make corrections, with about 90% of information being accurate
- Among the bigger challenges, EMIR reporting can be quite onerous
- APAC regulators tend to be more relaxed than the UK, and managing a global asset management firm out of Sydney can be especially challenging, with time zone

Interviewer:
- David Grana, Head of Production, Clear Path Analysis
Interviewee:
- Sydney-based, Regulatory Reporting Manager, Global Asset Manager (200 billion AUD AUM)

1.3 INTERVIEW: Is the regulatory environment too burdensome for small and mid-size funds to expand their reach?

In an environment where fund managers are consistently being scrutinised for cost, where even a few basis points make a huge competitive difference, many smaller and mid-size fund managers are finding it difficult to enter new markets. This puts fund managers in a conundrum – scalability increases assets under management and profits, but the costs of complying with complex regulations in new jurisdictions is preventing them from doing so. Where do they turn to?

Interviewer:
- David Grana, Head of Production, Clear Path Analysis
Interviewee:
- European-based, Regulatory Reporting Manager, Asset Management Firm (9 billion Euros)

SECTION 2

SELECTING THE BEST TOOLS FOR THE JOB

2.1 INTERVIEW: Doing the heavy lifting: Managing quality of data in the reporting process

Although outsourcing may be more prevalent in the world of regulatory reporting, the more complicated feat of collecting, sorting, and classifying the necessary data is done inhouse. This requires fund managers to coordinate resources internally to source data and ensure its quality in a timely fashion. Compromised data can result in costly audits and a reallocation of resources. What tools are fund managers employing in order to manage the integrity of data, at what cost, and can and will this data be used for internal or commercial purposes?

Summary Points:
- There are variances in the reporting requirements across different jurisdictions
- The more services that a vendor provides, the more costly the overhead
- Relaying quality information to your reporting provider is critical to ensuring accuracy
- Increased competition amongst vendors will hopefully drive down the cost of technology and increase the shift towards automation

Interviewer:
- David Grana, Head of Production, Clear Path Analysis
Interviewee:
- Robert Pearce, Chief Compliance Officer & Managing Director, Conning Asset Management

2.2 INTERVIEW: Too tech-heavy - The need for regulatory-driven technology

Technology is becoming more common across the industry, especially in the coordination of data in regulatory reporting. However, some heads of reporting feel that some technology platforms are too complex, too unreliable, and not designed with a reporting mindset. Where have technology providers fallen short? What must they do in order to win over the confidence of fund managers so that they can trust reporting systems to execute the functions that they have been designed for?

Summary Points:
- Incorrect information on electronic platforms has put a strain on resources to perform quality control
- There are growing concerns over the security of the information that is transmitted to the SEC, since they have experienced their own breaches
- There is a challenge in getting platforms to communicate with one another and in housing data in a central location
- Technology platforms are impractical and require too many checks by a set of human eyes to ensure accuracy
- Technology providers could benefit from conducting further consultations with regulatory reporting managers

Interviewer:
- David Grana, Head of Production, Clear Path Analysis
Interviewees:
- Christina Weber, Chief Compliance Officer, RBC Asset Management
- Kathleen Gorman, Chief Compliance Officer, RBC Funds Trust