Break Free from Excel for Regulatory Compliance that Scales

Asset managers operating on the European continent are fighting a war on two fronts as regulatory complexity increases, and margins shrink, every single quarter. Tactics and tools that worked before no longer support a thriving business, as firms take a closer look at the people and processes required to maintain compliance without losing market share. 

As a provider of leading data solutions in the investment industry, FE Fundinfo has seen the industry change, and the gap widen between the top and the bottom of the asset management food chain. One thing the winners have in common: they know how and when to automate processes to keep business moving forward in a compliant manner. 

Let's explore how cutting-edge technology is the not-so-secret weapon that  top-performing asset managers use to gain and keep a competitive edge.

The Pitfalls of Spreadsheet-Based Reporting

Familiar and seemingly cost-effective, spreadsheets come with significant drawbacks in the context of modern regulatory reporting. The manual data entry process and formulas are error prone, not to mention time-consuming. Considering that reporting must be done for every fund operating in every market, this approach is simply not scalable enough to meet increasing regulatory demands, and the lack of a clear audit trail puts Excel-fans in the lurch when data integrity challenges arise. 

The Rise of Automated Reporting Solutions

To break free from the spreadsheet, modern asset managers are embracing automated reporting solutions that consolidate and validate data and deliver reports at scale. The advantages of this approach speak for themselves:

• Accuracy: Automated data collection and validation reduce human error.
• Speed: Real-time data processing and report generation save hours of labour.
• Consistency: Standardised processes deliver uniform reporting.
• Scalability: Cloud-based solutions easily adapt to a changing regulatory environment.

Balancing Automation with Expertise

But anyone who has tried to outsource a task completely to automation will attest: human expertise remains critical. While technology can help with data consolidation and output, experienced professionals are integral to adjust to changing regulations and validate consistency across reporting. 

The most successful asset managers strike a balance between technology and human oversight, and that’s the leading principle behind our centralised platform for regulatory reporting: Fund Information Hub (FIH). 

Within FIH, Regulatory Data Templates service utilises a “Collect Once, Distribute Everywhere” methodology, so uses can input data once and use it for multiple regulatory reports. This solution ensures consistency across various reporting requirements and

significantly reduces the time and resources dedicated to the manual process of data collection and distribution. 

Our solution offers: 

• A single source of truth for data management
• Real-time data validation and error checking
• Automated report generation for multiple regulatory requirements
• Comprehensive audit trails for enhanced transparency

Long-term Strategies for Cost Reduction

Building efficiency into your compliance practices isn’t just about saving time, it’s a strategic resource allocation decision that sets your firm up for growth. By implementing automation with a trusted partner, asset managers can free up resources for value-added activities. As competition in the industry remains fierce, every strategic advantage to advance growth an innovation is a win. 

We believe that the future of regulatory reporting is powered by technology. By balancing automation with expertise, we are helping asset managers transform their compliance processes into a strategic advantage.