The Reality of Compliance for Real Estate Fund managers

31st July 2020 3822 - Blog Posts

Real Estate Fund managers are always seeking to reduce their Compliance and Regulatory reporting burden, with the pressure of ‘business as usual’ it can be extremely challenging to manage everything effectively. This enables solutions like Regulatory Hosting to enter the field of play.

Regulatory Hosting is best described as a predominantly tech-driven and automated Compliance & Regulatory services which are hosted on dedicated platforms. Such solutions can be provided, either managed or self-managed options, or potentially a hybrid of the two, dependent upon business requirements.

Adoption of Regulatory Hosting facilitates a streamlining and significant reduction of process overhead relating to most aspects of mandatory reporting, as set out by the many and varied global governing bodies.

Lawson Conner - Regulatory Hosting

Operationally dynamic, Regulatory Hosting provides Real Estate Fund managers the ability to improve work-flows, decrease or mitigate risk together with audit efficiency benefits, whilst simultaneously optimising or reducing operational costs.

More specifically, with increased pressure of scrutiny for firms operating in what could be described as today’s ‘Covid19’ market compliance is highlighted as a top priority. Particular attention highlighting AML legislation and it’s potential impact on Real Estate Financial Services. Recent changes in moving towards the recently announced 5AML perfectly demonstrate just how difficult it is for many firms to keep up with constantly evolving legislative and directive changes. Not keeping up to date is regrettably no defence when responding to regulatory bodies and therein lies one of the biggest challenges and risks solved by Regulatory Hosting.

Regulatory Hosting solves not just this particular headache but a host of others, such as Regional and Financial regionalisation, timely, consistent up to date audit capture and trail, dynamic adaptation to regulatory changes and reporting requirements, elasticity of service offers dependent upon specific business requirement, minimised sunk costs, fully managed or self-managed solution offers.

In conclusion, it is essential that in the current global regulatory landscape, fund managers take extra consideration towards compliance. Regulatory software enables managers to streamline and improve their capabilities and focus on core, revenue generating tasks. In addition, cost-effective compliance is essential for emerging funds. Equally, resourcing is critical when you consider the variety of detail required to facilitate regulatory activities including AML & KYC, PRIIPs KIDs, analysis & audits, reporting and more.

Author

Joe Woodbury
Director, Investment Management Solutions

E: jwoodbury@lawsonconner.com
D: +44 (0) 203 696 2560