Regulatory Requirements Top Concern for Investment Managers

A poll released by SEI reveals that meeting new regulatory requirements remains the top challenge among investment managers.

One in three respondents (33%) identified this as the most significant challenge to the industry over the next 12-18 months. Participants were split on the effect of new financial regulation; half of those polled believe new regulations will have a significant effect on the profitability of their firms while 41% of participants expect insignificant impact.

According to a press release, managers were not split, however, on the top channels for growth for the next 12-18 months, as nearly half of respondents (46%) ranked the institutional channel as the greatest opportunity for asset growth among client segments and distribution channels. Other respondents named RIAs/IFAs (20%), retirement plans (18%), and sovereign wealth funds (11%) as top growth opportunities.

A summary of the poll is available for download at http://www.seic.com/managerpoll.

This article is extracted from a report at PlanSponsor.

Sovereign Investor:  Are asset managers to be trusted if we don't have strict regulations?  If you're a sovereign/institutional investor, to what extent are you prepared for that 11% of the industry that's out to win your  mandate? Will managers in more highly regulated markets be more or less likely to get your business, or is it not an issue?  Is regulatory compliance an important factor in your evaluation process?