Regulatory Pressures Push Asset Managers to Outsource

Research conducted by Cerulli Associates earlier this year found that independent financial advisers (IFAs) are starting to rapidly increase their appetite for outsourcing investment management. Global Investor speaks with Citisoft's Steve Young discussing the research.

For asset owners, execution risk is a risk factor associated with outsourcing that has received insufficient attention, suggests Young. "There is an assumption that the large providers can do execution, but in reality there is not a universal model and as you move up the value chain providers are offering a bespoke service to each client. To drive costs down there need to be more shared services. Clients need to spend more time looking at the operations of the service provider, and the technology that underpins it, to assure themselves they can get the level of service they need." Read the full article.