KOGER: Most Asset Managers See Less Regulatory Enforcement Under the Trump Administration

Feb 7 2018 | 12:43pm ET

KOGER Inc., a global financial services technology company, has released a new study examining risk for hedge fund and private equity funds.

The online survey was conducted in January 2018 with 200 executives from hedge funds and private equity funds.

According to the study, more than half (56%) of executives at hedge fund and private equity funds believe regulatory enforcement has decreased under the Trump administration, and 85% view the U.S. regulatory environment as more relaxed than it is internationally.

Commenting on the more relaxed U.S. regulatory enforcement climate, 77% of funds say regulatory and compliance issues have currently been less of a concern than in the past in the survey.

However, 73% of respondents believe that a new administration is likely to strengthen regulatory enforcement in the future.

Other data points from the survey:

  • A majority (73%) of asset managers cite cybersecurity threats as the biggest risk going forward in 2018, followed by a market correction (67%), geopolitical risks (38%), an economic downturn in the U.S. (31%) and an economic downturn internationally (31%). 
  • 64% of asset managers report they will consider exposure to Bitcoin and digital currencies in the next few years.

 

“It’s clear from the data that fund managers see the regulatory and enforcement climate as having eased in the US, especially compared with that in the UK and Europe,” said Ras Sipko, KOGER’s chief operating officer in a statement. “Today’s environment has led in the short term to somewhat less of a worry about compliance, although that scenario could change in the future.”

KOGER is a financial services technology company that works with global asset managers, financial institutions and fund administrators, providing a platform for investment fund administration and compliance. The company’s NTAS platform supports more than 8,000 funds with $2 trillion in assets.


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