The asset manager is building ever more complex portfolios, investing in products beyond traditional equities and bonds, necessitating more third-party providers in the investment chain, according to John Marsland, COO of Schroders. The increasing complexity and use of more exotic products mean many more compliance rules need to be checked at various parts of the process, creating new challenges for the asset manager. Monitoring the more than 30,000 compliance rules on Schroders' platform presents challenges and highlights the need for better data and technology to ensure good governance, Marsland added. In a recent report, McKinsey & Company said that "financial services firms are increasingly turning away from traditional investments toward alternative assets such as cryptocurrencies.
The asset manager is building ever more complex portfolios, investing in products beyond traditional equities and bonds, necessitating more third-party providers in the investment chain, according to John Marsland, COO of Schroders. The increasing complexity and use of more exotic products mean many more compliance rules need to be checked at various parts of the process, creating new challenges for the asset manager. Monitoring the more than 30,000 compliance rules on Schroders' platform presents challenges and highlights the need for better data and technology to ensure good governance, Marsland added. He also warned of the risk of automating bad processes.