Can you manage the transformation the Asset Management industry is facing?

As an Asset Manager, you want to focus on your core business. Instead, you find yourself increasingly overloaded with complex regulations and pressure to manage costs. How can you stay on top of your compliance position at all times? Are you at risk? Could this harm you or your company’s reputation?

  • The pressure is intensifying from all angles.

  • Margins are being squeezed.

  • New regulations are eroding your profitability.

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Your industry is undergoing a major transformation

"Asset managers have seen profits declining by around 10% since the Global Financial Crisis"

1/ New regulations (e.g. MiFID II, DOL Fiduciary Rule) as well as shift towards outcome-based solutions will put further pressure on profitability.

2/ Passive funds are increasingly more popular. This together with emergence of automated advice (robo-advisors) solutions puts further pressure on fees in the AWM industry.

3/ In Europe, between 2011 and 2016, 80% of active equity funds failed to surpass their benchmarks, leaving investors disappointed. This led to increased regulatory scrutiny on AWM margins.

Is your operating model designed to overcome this transformation?

In-house Tax & Accounting function

Key Features
  • Substantially all tax & accounting activities performed internally by Tax or dedicated Finance team
  • Requires significant investments in skilled talent and technology
Key benefits
  • Opportunity to build internal knowledge and expertise
  • Legacy knowledge of the business and existing relationships with other internal functions

Co-sourcing arrangements

Key features
  • Collaborate with external resources on certain activities within the tax/accounting lifecycle
  • Leverage outside expertise on specific tax/accounting needs
Key benefits
  • Retain in-house tax/accounting expertise to manage co-sourcing and other high-value internal activities and projects
  • Access to external technology & expertise
  • Opportunity to implement technology for in-house functions

Out-sourcing arrangements

Key features
  • Fully leverage service providers in fulfilling certain activities within the tax/accounting lifecycle
  • Outsource components of the Tax/Accounting function
Key benefits
  • Allow internal resources to perform higher value activities such as strategic planning
  • Reduce significant risks associated with tax compliance

Managed Services

Key features
  • External providers comprehensively meet all needs across the full company lifecycle, including planning & reporting, via new technology
  • Services delivered by an integrated team
Key benefits
  • Access to fully scalable team to meet specific needs
  • Realise cost savings with one dedicated service provider
  • Integrated services for the entire company lifecycle

Our Managed Services solution

PwC Managed Services helps you overcome these challenges. Our comprehensive outsourcing solution for your regulatory and compliance obligations, combined with the expertise of our team and the broader range of services covered bring you peace of mind.

Get more info on our solution

 

Contact us

Oliver Weber

Partner, PwC Luxembourg

Tel: +352 49 48 48 3175

Stéphane Rinkin

VAT Partner, PwC Luxembourg

Tel: +352 49 48 48 2044

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