A number of key issues facing funds management business leaders were discussed at Kaizen’s COO lunch held this week.
We would like to thank executives from IOOF, Goldman Sachs Asset Management, Prodigy Investment Partner, Alexander Funds Management, UCA Funds, Janus Henderson, Legg Mason, OneVue, Cooper Investors, LONSEC, Bell Asset Management, and Qualitas.
Thank you to all who attended. It was great to see you again. A very valuable and enjoyable discussion.
ASIC RG97
Members of the group continue to express frustration at the operation of ASIC RG97 (fee disclosure) and note that an external expert is conducting a review. Ongoing concerns include the high level of inconsistency in compliance and approach and whether RG97 adds any value for investors?
ASIC RG259
Participants discussed the process of preparing for RG259 (Risk management systems of responsible entities) and noted that in some cases the process lead to better education and higher staff engagement. Although anticipated to be onerous, several participants reported positive outcomes from reconsidering their risk management systems and internally promoting them.
DATA PRIVACY
The group noted recent changes to data privacy rules, particularly notification. There was general agreement that data protection and cyber security are key focus areas, as any weaknesses are poor for client experience and are a big deal for a firm’s reputation.
TECHNOLOGY
It was generally considered that the challenges of managing technologies apply across the funds management spectrum. Growing firms can find staff so focused on the inside that they may miss advancements outside. Likewise jumping onto new technologies can create its own problems. To mitigate this, the importance of a robust but flexible IT strategy, having the right people with the right skillset, and having vendors providing their core focus services are important.
ASX mFund
The group discussed the ASX mFund service – where experience is mixed because some key brokers have not joined, and because it does not suit the distribution model of every asset manager, and also noted the success and influence of automated fund processing.
FUTURE TOPICS MAY INCLUDE:
Blockchain – how does it work in an operational way
People issues, market update, finding talent, salary data, hot skills
Asia Region Funds Passport / Collective Investment Vehicles
Payment platforms
How are industry bodies representing our industry?
