The EY Operational Tax Conference held in November 2017 conducted a sample of 21 Fund Managers and Financial intermediaries based in the UK.
Insufficient budget and gaps in employee skill sets are making it hard for EY tax clients to adopt disruptive technologies. That was one of the main conclusions from the second EY Operational Tax Conference, held in London in November 2017. Participants highlighted gaps in both their personal technology skill set and their current tax technology budget. The focus of the conference was on funds, custodians and broker-dealers that hold, trade in or service global securities and are affected by securities taxes.
Speakers from across EY, along with guest industry experts, discussed the future of operational taxes in the asset management industry. The themes of the day were innovative technology (such as distributed ledger and blockchain); enhanced data analytics and customer transparency; and the future of the tax operations function.
Obstacles to embracing disruption
Participants highlighted gaps in both their personal technology skill set (74% do not believe their teams have the right technology skill set) and their current tax technology budget (95% said they have insufficient budget).
Given the significant focus on improving the post-trade process and the use of blockchain technology, a major gap exists within tax functions to understand what such technology means for the asset management industry (70% said they had an insufficient understanding of blockchain).