Asset managers bucked the gloomy trend outlined in the latest Financial Services Survey, conducted by the Confederation of British Industry (CBI) and PriceWaterhouse Cooper (PwC), in becoming more optimistic over the last three months of 2016. The financial services industry as a whole has experienced its longest period of sentiment decline since the 2008 crash.
Overall, optimism about the future of the business situation fell for the fourth consecutive quarter with 42% of all firms citing Brexit as the number one challenge to look out for in 2017, closely followed by macroeconomic uncertainty and regulatory compliance.
Mark Pugh, asset and wealth management leader at PwC, said: “It’s been quite a year for the UK’s asset management industry but our survey shows future optimism remaining strong, with business volumes expected to grow. Between the opportunities analytics will offer for improved customer engagement and ongoing regulatory scrutiny, the industry is sure to have a busy year ahead.
“As the UK begins its negotiations to leave the European Union, asset managers are aware their interaction with regulators will increase. It is vital the industry continues to work closely with both the government and the regulator to ensure all parties are aware of each other’s needs and expectations.”
However, the decrease in sentiment was not reflected by plans to restrict spending, with 58% of firms saying they will spend more on IT, and 14% saying they will increase spending on marketing.
