Calastone – Enabling Distribution

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Apr 19, 2018 - By geography. 5. ▫ UK: 41%. ▫ Luxembourg: 18%. ▫ Ireland: 10%. ▫ Jersey: ... Malta: 1.5%. ▫ Spa
Calastone Connect Forum 19th April 2018

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The impact of technology and regulation for funds George Mitton, Deputy Editor, Funds Europe A Funds Europe survey in partnership with Calastone.

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“ We don’t make investment decisions based on regulation. We make them based on technology… The reality is regulation often lags behind innovation.”

Bill Maris, founder of Google Ventures, as reported in the Independent, October 2014

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The survey 193 funds professionals participated in the survey conducted online in early 2018

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Administration: 38% Distribution: 20% Manufacturing: 9% Other: 33%

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By geography         

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UK: 41% Luxembourg: 18% Ireland: 10% Jersey: 4% Switzerland: 3% US: 3% France: 2% Isle of Man: 2% Netherlands: 2%

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Germany: 1.5% Malta: 1.5% Spain: 1.5% Sweden: 1.5% Elsewhere in Europe (including Greece, Italy, Belgium, Finland and Slovakia): 3.5%

 Asia: 5%  Africa: 1%

It’s a lot of work

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MiFID II, a minefield

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Unintended consequences

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A desire for tech

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“ Technology is rapidly evolving and unless a special focus or personnel keeps pace with such development, then very quickly asset managers will lag behind.”

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Ambivalence

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The investor pays…

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A steady clip

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Tainted legacy

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“ Culturally, the asset management industry has operated in the same way for the last 30 years, so there is not necessarily the understanding or the urgency of adopting new technology. Likewise, the firms’ cultures are not prepared for working in a more disruptive environment.”

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Blame the back office

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All hail blockchain

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Not good with data

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Access denied

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“ Many asset managers rely on administrators to provide all information to investors, meaning they rely on the administrators’ technology and data. They don’t invest themselves into their own end-user experience.”

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Technical difficulties

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Admin under threat

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Tech firms are friends

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Or maybe they’re enemies?

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“ The competitive environment restricts collaboration across asset managers and the funds industry, therefore the ability to achieve standardisation against an ever-moving technology landscape is almost impossible.”

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Banks top overall

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D2C tipped for growth

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Passive shows promise

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…but not for sophisticates

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Robo splits opinion

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Watch out for new fees

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“ Why are asset managers not good at adopting new technology? It’s because you have a bunch of old people at the C-levels of asset management who have allergic reactions to the thought of change or evolution.”

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© 2018 Calastone Limited