Overview - EY - United Kingdom

Compliance management for asset management survey 2012
Offers revealing insight into the challenges confronting the industry's compliance professionals, future developments, and evidence of the importance of the compliance function in the industry.
2013 UK Attractiveness Survey
The UK retains its overall lead in European foreign direct investment (FDI) amid a general decline in FDI projects across Europe.
ITEM Club Financial Services Spring Forecast 2013
ITEM's UK FS Spring Forecast looks positive, with bank lending and multi-asset funds set to grow, and encouraging signs in the life insurance industry.
2012 Financial Services transactions and trends
A summary of 2012's key trends and transaction activity in the Financial Services sector and the outlook for 2013.
Evolving challenges in PE fund valuation
Compliance requirements and transparency demands are transforming the valuation function. Learn how to build a process robust enough to produce consistent, well-documented and supportable valuations.
Evolving private equity operations for growth
The improving economy offers new growth opportunities for the PE industry, marking fundamental shifts in firms’ operating models. Learn how PE operations are adapting.
FATCA alert: impact on asset management
With final FATCA regulations now released, learn how they affect the industry and what firms need to focus on for the remainder of 2013.
ITEM Club Financial Services Winter Forecast 2013
The ITEM Club FS Winter Forecast predicts a more certain outlook, but continuing low growth for the UK’s FS institutions in 2013 and beyond.
Innovation for asset management 2012 survey
Our first innovation survey for the industry reports seed capital is becoming scarcer while most innovation budgets remain focused on fixed income and equity products.

Asset management: achieving a competitive advantage

The asset management industry of today is marked by increased competition and growing customer demands for transparency – all set against the backdrop of a volatile market. As firms grapple with business issues such as product innovation, evolving fee structure and industry consolidation, they also find themselves needing to devote more time than ever to managing regulatory demands.

Our global reach
Our Global Asset Management centre helps you navigate these challenges by bringing together the ideas from 35,000 professionals around the world. The result is seamless, high-quality service, wherever you’re located.

Our insight
Turn to us for a clear perspective on issues that affect the asset management industry. Our wealth of knowledge helps you retain and grow assets, enhance investment performance, mitigate risk and respond to regulatory changes.

Consolidation, yet polarization

Resulting pricing pressures and the need for investment suggest that the largest asset management firms will continue to enjoy scale advantage. Add the growing cost of regulatory compliance and the impact of further banking divestments, and consolidation is expected to continue, if not accelerate.

Some managers are diversifying by developing new products or extending product ranges, while others are offering existing products to new customers or seeking to enter new geographic markets, such as emerging-country economies. Others are evaluating long-term viability to determine whether to be acquirers, enter into joint ventures or possibly prepare to sell their firms.

Whether asset management firms decide to acquire new firms, consolidate product lines or launch new products in 2012 will depend on what happens to valuations, regulatory and tax uncertainties, as well as on how financial markets perform.

Our approach — grounded in industry-specific experience and committed to delivering measurable, sustainable results — can help you adapt and succeed.

Related content:

Investor transparency and communication

Post credit crisis, transparency has become the buzzword, namely in the alternative investment management industry. Additionally, investors are more focused on risk than ever before.

Asset management firms must respond to the increased transparency requirements of institutional investors, especially with information and proactive reporting around the mitigation of both investment and operational risks.

Requests for third-party reports have gained significant momentum in the industry as they have become an effective and efficient tool to communicate about a firm’s internal control structure and in turn address increased investor demands.

We can help you prepare accordingly.

Related content:

Governance and regulatory changes

Significant regulatory changes impacting the asset management industry are occurring, including FATCA, AIFMD and expanded registration for investment advisers with the SEC. Changes may include increased capital requirements, leverage limits, remuneration caps and/or new disclosures and reporting.

Structural changes to the global banking system, Solvency II and the regulation of derivatives may also have profound and unpredictable effects on the asset management industry.

In addition, Europe is increasingly focused on shadow banking activities and how best to regulate, while the SEC in the US has discussed further reforms to the money market fund industry in light of the financial crisis.

In response, asset management firms are evaluating current compliance functions, resources (both people and technology) and establishing formal compliance policies and procedures. Further, business models are evolving as there is more interest by alternative managers in regulated products (e.g., UCITS, mutual funds) and conversely, more interest by regulated managers in absolute return strategies.

We can help you prepare:

Expanding beyond domestic borders

International expansion has emerged as a major focus in the asset management industry with asset managers from all regions looking to increase their presence beyond domestic borders. The “East to West and West to East” phenomenon is expected to gain further momentum in 2012.

Many managers are cautious about the rapid shift of capital into emerging markets, and have concerns about the prospect of asset bubbles in these markets.

Rather than returning to business as usual after the global financial crisis, new patterns of international investment are emerging. Asset management firms will need to adjust their strategies to reflect the changing patterns of investment that are developing and position themselves competitively.

Are you prepared?

Related content:

Eurozone Forecast: Outlook for Financial Services - Spring 2013

Our Spring Outlook for Financial Services forecast looks at what the latest financial developments mean for the region's banks, asset managers and insurers. Learn more.