Investment managers are increasingly delivering client reports online, according to research by Rhyme Systems, an asset management services company.
A survey of managers at a Rhyme Systems workshop shows there is a growing trend towards web delivery and a need for greater reporting flexibility to accommodate changing client needs.
The research also suggests all client reports might need to be bespoke but raises questions about how to charge the cost to the customer. However, most firms surveyed do not measure the cost of producing individual client reports.
There is also a trend towards integrating client reports across a business rather than using a separate service.
One large London-based firm says it replaced its stand-alone department with an integrated team. The firm says the team has been involved more in other business functions such as performance measurement.
A smaller firm involves different at different stages of the reporting process and intends to further streamline the process with a centralised despatch.
The survey also shows managers do not expect the markets in financial instruments directive (MiFID) to have a great impact on their plans for client reporting. Most firms say their processes are “on the way there” and highlight proving their compliance to the regulator as the bigger issue.
Many firms are also concerned compliance and operations divisions within institutions work together ineffectively, failing to meet MiFID requirements.
MiFID will come into effect on 1 November when it will replace the existing investment services directive (ISD). MiFID extends the coverage of the current ISD and introduces more extensive requirements regarding how firms conduct business and internal organisation.
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