Outsourcing Regulatory Filings: A Strategic Advantage for Investment Managers

Investment managers globally are facing a growing number of regulatory obligations, including new and intricate changes to filing requirements, which are often time-consuming and resource intensive. As firms contend with increasingly complex filing requirements, the need to simplify and streamline these processes has never been more important.

One solution that has gained traction in the industry is outsourcing. This approach allows investment managers to streamline their operations and improve accuracy and cost-efficiency. Below, we explore the key benefits of outsourcing regulatory filings.

Access to expertise and specialization

Regulatory compliance is a specialized field that requires staying up to date with constantly evolving regulations and standards. For investment managers, whose primary focus is on managing assets and maximizing returns for their clients, the demands of compliance can be a significant challenge to manage. They may not have the resources to maintain a full-time, in-house compliance team, in particular, professionals that are well-versed in all aspects of regulatory filings.

Outsourcing this task allows investment managers to leverage the expertise of regulatory professionals that are specifically trained to handle complex filings such as Form ADV, Form PF, AIFMD Annex IV reports, and other required disclosures. These third-party providers stay current on regulatory updates, ensuring that all filings are accurate, timely, and aligned with the latest industry requirements.

Cost-efficiency and scalability

Salaries, training, software, and other operational costs associated with regulatory filings can significantly impact an investment manager’s bottom line. By outsourcing, managers can reduce these fixed costs and shift to a more flexible, scalable model.

For smaller firms, or those experiencing growth, this scalability offers a major advantage, as they can access top-tier compliance services without the burden of maintaining a large, expensive in-house team.

Improved accuracy and risk reduction

Mistakes in regulatory filings can result in fines, reputational damage, and even regulatory sanctions. The complexity and specificity of reporting requirements mean that even a minor oversight can lead to significant consequences.

Specialized outsourcing firms, however, are designed to minimize these risks. By utilizing advanced technology platforms and experienced professionals, they reduce the likelihood of human error or misinterpretation of regulatory requirements.

Adapting to regulatory changes

Regulatory environments are constantly evolving. Whether it’s the implementation of new rules, changes in reporting requirements, or increased scrutiny from regulators, staying current with these changes is a full-time job. Outsourcing regulatory filings ensures that investment managers have access to professionals whose job it is to monitor and adapt to these changes. This proactive approach helps firms avoid last-minute scrambles or non-compliance due to outdated practices.

Conclusion

Outsourcing regulatory filings is a strategic decision that allows investment managers to optimize their operations, reduce costs, and mitigate risk. By leveraging the expertise of specialized providers, firms can focus on their core competencies, stay compliant in an ever-changing regulatory environment, and ultimately deliver better results for their clients.

How we help

Boost efficiency and reduce risk by outsourcing your regulatory filing tasks. Our managed services simplify your processes, save time, and enhance business outcomes.

• Outsource with confidence: Leave the complexity of filing to us.
• Enhance efficiency: Free up your team to focus on strategic initiatives while we manage the routine, yet critical process of preparing and submitting your regulatory filings.
• Mitigate risks: Gain peace of mind knowing our experts are proactively managing your regulatory filings, reducing operational risk, and boosting your firm’s resilience.

Our regulatory filings specialists can help your firm draft, review, and file applicable filings on your behalf. We use our proprietary in- house regulatory reporting platform for most filings to reduce risk and increase operational efficiencies.

Reach out to your ACA consultant, or contact us to find out how we can help you launch, grow, and protect your firm.