The outsourcing of Front, Middle and Back Office functions is not a new phenomenon, allowing the investment manager to focus on delivering their investment strategy and generating alpha. Following the financial crisis of 2007-8, the demand for outsourced fund operations has increased as the financial and regulatory landscape continually shifts.
Increased Regulatory Requirements:
Managers are experiencing higher compliance costs for operations functions due to large swathes of regulation within the industry such as MiFID2, EMIR, Basel III, FATCA and the Dodd-Frank Wall Street Reform.
Reducing Operating Overheads:
Continued pressure on fees, the drive by investors for greater transparency and continuing advances in technology have squeezed the margins for investment managers. Outsourced trading is proving particularly effective for reducing overheads, not to just for smaller managers but also established names who need to reduce their costs.
By utilising OSMO’s platform our clients can furnish their business with institutional grade technology, processes and staff from our team of partners utilising their extensive experience gained within the buy-side environment.