The survey off 100 wealth managers carried out by Equiniti found only three in ten wealth managers believe the sector is adapting ‘quite well’ or ‘very well’ to regulatory change. Of the rest 49% believe the industry has adapted ‘satisfactorily’ while 9% said the industry has not adapted well and 11% said the industry has adapted poorly.
Equiniti also found wealth managers split on the likely uptake of outsourcing with 59% saying all firms will be looking to outsource some or all of their processing requirements, but 38% said they expect large firms in the industry to keep all of their operations in-house.
Respondents also indicated there is a concern in the industry over pricing with 46% saying fee structures remain a challenge, 46% saying they were clear only to a point and 4% said fees are not clear at all.
Other notable findings include that 60% of wealth managers questioned said developing customer communications and relationships was in the top two areas of opportunity for their business, 58% said penetrating new customer markets was the top priority, 67% said the costs of regulation are a major concern, while 62% of wealth managers said rising operational costs are a major threat to their business.
“While regulation continues to dominate the agenda for wealth managers the FCA is looking at the role of the board in the overall equation of planning, governance and oversight,” said Mark Taylor, MD of Equiniti Investment Services.
“Outsourcing can do many things for wealth managers but it is not a fix-all solution and firms cannot relinquish all responsibility for regulatory compliance,” Taylor added.
