SimCorp evaluates strategic considerations for selecting the optimal IT platform for regulatory compliance
TowerGroup offers expert commentary in the latest SimCorp Journal on IT evaluation - new legislation will have vast repercussions for financial IT infrastructures.
SimCorp, a leading provider of highly specialised software and expertise for the investment industry, released today an industry expert roundup examining the choice of IT investment management platform for financial institutions in preparation for upcoming regulation. The article examines the implications of Dodd-Frank and UCITS IV, and the repercussions of these regulations for asset managers in North America and Europe.
The commentary, which appears in the SimCorp #Journal of Applied IT and Investment Management, features contributions from leading experts in the field, including: Michael T. Dolan, Partner, Financial Services, Ernst & Young LLP, Sriram Venkataraman, Senior Manager, Financial Services, Ernst & Young LLP and Dushyant Shahrawat, a Senior Research Director at TowerGroup in the Securities and Investments practice. The article outlines how unprecedented regulatory activity and more stringent client demands have made it imperative for investment management organisations to have an optimal technical infrastructure in place that supports their growth strategy.
With Dodd-Frank set to roll-out this summer, financial institutions are increasingly in pursuit of improving transparency in the markets and facilitating the flow of information through transactions. Firms must now look into how their IT systems can support the required transparency mandated by these new reforms. The article discusses several criteria firms should use when evaluating technology platforms:
- Data Sources – Firms should look for a platform that can consolidate disparate data sources to obtain a true indication of risk exposure, as well as gain insight into liquidity, valuations and other important metrics.
- Automation – An optimal IT system will offer a high degree of automation to minimise any manual processing error that can lead to financial loss for clients and reputation damage for the firm itself.
- Frequency – A quality system should provide frequent updates to ensure robust data quality for informed decision making.
- Depth and Breadth of Coverage – Firms should pick a solution that covers all asset classes and financial instruments to ensure that new asset classes, funds and portfolios are being processed.
- Flexibility and Adaptation – The system must be able to incorporate regular changes to workflows and business processes in order for asset managers to stay on track and ahead of competition.
- Scalability – The platform needs to be able to scale to accommodate higher transaction volumes for new asset classes, funds and portfolios to ensure the organisation’s growth potential.
“Asset managers must be able to provision for new reform, but not at the expense of their growth and value creation strategies,” stated David Kubersky, Managing Director of SimCorp North America. “SimCorp understands the many challenges facing fund managers and is committed to providing enhanced technology that addresses the mounting and complex needs within the industry.”
To read the paper in full, please visit http://simcorp.com/Home/Journal.aspx.
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Enquiries regarding the announcement should be addressed to: Lars Bjørn Falkenberg, Senior Vice President, Head of Global Product & Marketing Management, SimCorp A/S, +45 35 44 88 00 / +45 26 30 01 27.
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About SimCorp: Since 1971, SimCorp has been providing investment and portfolio management software and services to the world’s leading investment managers, asset managers, fund managers, fund administrators, pension funds, insurance funds and wealth managers. SimCorp’s world-class software provides global financial organisations with the tools they need to mitigate risk through better transparency, reduce cost with operational efficiencies, and enable growth through better client service and added-value.
SimCorp is a global company regionally covering all of Europe, North America and Asia Pacific. Listed on the NASDAQ OMX, SimCorp is dedicated to supporting the global investment management industry, its clients and its investors.
For more information about SimCorp’s products, please visit www.simcorp.com/products.
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About TowerGroup: TowerGroup is a leading research and advisory services company focused exclusively on the global financial services industry. For more than a decade, it has provided the world's top financial services, technology, and professional services companies with advice and information. Its team of analysts and specialised advisers covers the business and technological issues impacting the entire financial services sector. More information at www.towergroup.com.