UAE seems ready for age of asset management | The National

UAE seems ready for age of asset management | The National:



"Andrew Haldane, a director at the Bank of England, referred to the “age of asset management” in a speech he gave in London in April. His point was that although asset managers do not carry many of the risks – for example, credit, market and liquidity – faced by banks, the regulators are attuned to the risks posed to the financial system by non-banks, including asset managers, following the shrinking of the banking sector.



This has thrust asset management to the heart of global capital flows. Assets under management are estimated at US$60 trillion to $70tn and growing across the countries in the Organisation for Economic Cooperation and Development (OECD), and could grow bigger yet globally as incomes and wealth increase across thinly penetrated developing economies.



According to last year’s KPMG Investment Management Industry Outlook Survey, the world’s biggest investment management firms overwhelmingly believe that political and regulatory uncertainty pose the biggest threat to their business models. Understanding and complying with regulations has been painful and, for many firms, has entailed material cost. The regulatory focus on asset management firms brings additional costs of compliance at a time when margins are under pressure because of greater competition from new channels and products. This is causing firms to reorganise themselves with combined compliance and data management programmes while keeping costs competitive through the outsourcing of selected back office functions and direct marketing to consumers."



'via Blog this'