Investors are struggling to find a new model for how markets and investments now work. The financial regulators and politicians are looking for new ways to stop such mistakes from recurring by making regulations tougher. Both will take years to find an effective formula. The safest bet is that investment companies will try to retain and regain the public’s trust by making their business simpler for all.
This will reshape the financial industry going forward for the next decade. More “big brother” legislation and financial compliance may well swamp the more dynamic investment houses. They will need to show that they have secure, viable systems to enable them to comply as well as service their client base economically and efficiently. They will also need a trusted, reliable vendor with deep industry knowledge backed by a world-class pool of skills and resources.
In this new age the scope of investment management is far-reaching. Clients demand instantaneous information and there is no margin for error.