The financial services industry is tightly regulated, and compliance with regulatory requirements is essential for avoiding hefty fines and reputational damage. Nevertheless, regulatory reporting remains a complex and time-consuming process, and requirements change frequently.
While asset managers need to stay on top of ever-changing requirements, they also need to lower compliance costs and boost overall efficiency.
This is a difficult undertaking, even in large organizations with sizeable budgets, due to the complexity of regulatory filings and increasing expectations with respect to governance, qualitative assessment, and regular review and disclosures. All of this is exacerbated by the shortcomings of conventional reporting infrastructure, which adds its own challenges:
- Legacy systems with multiple data sources: Systems that involve multiple data sources make it difficult to conduct thorough analyses at a reasonable cost.
- Manual calculations and processes: Asset managers often rely on manual workflows for regulatory reporting, which leads to human errors that put compliance at risk.
- Lack of scalability: Massive regulatory reporting operations are very difficult to scale, which makes dealing with rising data volumes costly and difficult.
- Poor alignment among reports: Regulatory filings involve repetitive, redundant tasks because reports lack consistency in the way information must be presented.
- Slow business insights: The process of gathering data and conducting analysis in order to gain business insights is typically very slow, hindered by manual processes.
As a result of all these challenges, asset managers are exploring other options for regulatory filing. One of these is cloud-based regulatory reporting solutions. Because the software is hosted remotely, firms do not need to invest in expensive hardware or infrastructure, which makes these solutions much more cost-effective.
The IVP Regulatory Reporting Solution, for example, is a cloud-based regulatory filing solution that is already helping asset managers:
- Reduce costs: Our cloud-based solution eliminates the costs of dedicated hardware, software, and maintenance.
- Improve operational efficiency: Automation and data quality management checks help standardize workflows, remove duplicate effort, create a single source of data, deliver reports faster, and respond to new requirements more quickly. Efficiency ratios, operating leverage, and regulatory excellence can all be improved as a result.
- Increase scalability: With our solution, asset managers can quickly scale capacity up or down in response to changes in regulatory requirements, market conditions, and technology. This is a crucial competitive advantage when workloads increase at end of the quarter and end of the year.
- Accelerate implementation: With our cloud-based solution, access is just a click away. This is a huge relief compared to legacy software installation which typically takes weeks.
The rise of cloud-based regulatory reporting solutions will be hugely advantageous to the financial services sector. These solutions save time and money by automating regulatory reporting workflows, which also makes compliance easier and reduces the risk of fines and reputational harm. Cloud-based solutions are also much easier to change, so they give asset managers an edge as regulatory requirements continue to evolve.
Maximize regulatory reporting efficiency with automation. This solution handles regulatory filings, manages threshold breach disclosures, and integrates seamlessly with enterprise systems and fund admins.
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