The majority of wealth managers view regulatory change as the single biggest challenge to their firms, according to a poll at an SEI conference.
According to the poll of 100 industry professionals, 58 per cent think developments such as Dodd Frank, the Volcker Rule, and the prospect of a uniform fiduciary standard pose the biggest business challenge. Part of the reason is that many wealth managers remain confused about the details of various regulatory changes, with only 22 per cent saying they have received enough information to fully understand new regulations; around 19 per cent saying they are “in the dark” about the details, and the rest saying they are in the process of learning.
However, meeting these regulatory challenges head on was the top priority for only 44 per cent of firms. This suggests there are other pressing issues that are splitting focus, SEI believes. Integrating new technology is the top priority for nearly a quarter of firms (24 per cent), the survey said. This in itself raises other issues, with nearly all those polled saying security threats resulting from technology enhancements were a concern.