Invest
Alternative fund managers expect increased fines for regulatory breaches, survey reveals
Invest
Alternative fund managers expect increased fines for regulatory breaches, survey reveals
A new study by Ocorian, a market leader in regulation and compliance services, has revealed that alternative fund managers anticipate a rise in fines for breaking regulations in their sectors. The international survey, conducted among fund managers at private equity, venture capital, and real estate firms, found that 79% expect the number and overall value of fines issued in their sectors to increase, with 18% expecting a dramatic rise. Additionally, 86% of respondents said their organisations are preparing or budgeting for a potential increase in fines they could face.
Alternative fund managers expect increased fines for regulatory breaches, survey reveals
A new study by Ocorian, a market leader in regulation and compliance services, has revealed that alternative fund managers anticipate a rise in fines for breaking regulations in their sectors. The international survey, conducted among fund managers at private equity, venture capital, and real estate firms, found that 79% expect the number and overall value of fines issued in their sectors to increase, with 18% expecting a dramatic rise. Additionally, 86% of respondents said their organisations are preparing or budgeting for a potential increase in fines they could face.
The research also highlighted that 79% of those interviewed believe their market is over-regulated, and 85% believe the level of regulation will increase over the next five years. When it comes to adhering to regulations in different jurisdictions, only 29% of those surveyed say it is not an issue, while 30% find it very difficult, and 37% say it is quite difficult. Moreover, 59% believe their organisation will find it more difficult to adhere to regulations over the next five years, with just 27% believing it will become easier.
Aron Brown, Head of Regulatory & Compliance at Ocorian, commented, "It's surprising to see that 54% of the firms surveyed believe their organisations are too focused on compliance and regulation and not on commercial aspirations. Whereas what we've seen with our clients is if you get it right in the first place you become more efficient and are more attractive to investors."
The research also identified actions alternative fund managers have taken due to regulatory difficulties. Over the past five years, 65% of those surveyed said their organisations had invested in new technology to help with compliance, 55% had decided against making a major acquisition or investment because of regulatory concerns, and 53% had closed a division or part of their business due to regulatory concerns.
The study also found that 87% of the professionals interviewed expect their organisations to increase budgets for regulation and compliance over the next five years, highlighting the growing importance of these issues in the alternative fund management sector.
RELATED ARTICLES
Investment insights
From check-up to edge: a portfolio review case study that turned volatility into advantage
With rates rising more than 400 basis points in 18 months and asset correlations behaving badly, periodic portfolio reviews have moved from hygiene to edge. This case study shows how a disciplined ...Read more
Investment insights
Policy risk meets cost shock: Why investors are exiting housing — and what business can do about it
A sudden jump in holding costs and a rising ‘policy risk premium’ are pushing Australian property investors to sell, thinning rental supply and pushing rents higher. Industry surveys point to fear of ...Read more
Investment insights
Australia's investor shuffle as policy risks and rising yields squeeze the rental market
A quiet but consequential shift is underway: more property investors are exiting, citing higher holding costs and fear of future tax changes. That retreat risks worsening the rental shortfall just as ...Read more
Investment insights
State Street Markets report highlights resilient investor sentiment amid shifting allocations
In a climate of evolving global financial landscapes, State Street Markets has released its latest institutional investor indicators, revealing a sustained positive sentiment across the investment ...Read more
Investment insights
Consumer strength lifts Australia’s GDP — but the investment slump is the risk line every CFO should read
Australia’s June-quarter growth surprised to the upside as households and government spending outpaced a steep fall in public investment. The services economy is doing the heavy lifting, but the ...Read more
Investment insights
Gold prices surge to record highs amid economic uncertainty
In a remarkable start to September, spot gold prices have soared to unprecedented levels, breaching the US$3,500 per ounce mark. This surge has been fuelled by a complex interplay of macroeconomic ...Read more
Investment insights
First‑home buyers are rewriting the playbook and creating new profit pools
First‑home buyers remain stubbornly active despite higher rates, forcing lenders, developers and agents to retool products and processes. Beyond a checklist of steps, this is a strategic market that ...Read more
Investment insights
Disrupt or be commoditised: Why Australia’s brokers must rebuild their operating model now
A former Google executive’s warning to Australia’s brokerage sector is less a hot take than a strategic diagnosis: the industry’s economics are shifting, fast. AI-native competitors, policy-driven ...Read more
Investment insights
From check-up to edge: a portfolio review case study that turned volatility into advantage
With rates rising more than 400 basis points in 18 months and asset correlations behaving badly, periodic portfolio reviews have moved from hygiene to edge. This case study shows how a disciplined ...Read more
Investment insights
Policy risk meets cost shock: Why investors are exiting housing — and what business can do about it
A sudden jump in holding costs and a rising ‘policy risk premium’ are pushing Australian property investors to sell, thinning rental supply and pushing rents higher. Industry surveys point to fear of ...Read more
Investment insights
Australia's investor shuffle as policy risks and rising yields squeeze the rental market
A quiet but consequential shift is underway: more property investors are exiting, citing higher holding costs and fear of future tax changes. That retreat risks worsening the rental shortfall just as ...Read more
Investment insights
State Street Markets report highlights resilient investor sentiment amid shifting allocations
In a climate of evolving global financial landscapes, State Street Markets has released its latest institutional investor indicators, revealing a sustained positive sentiment across the investment ...Read more
Investment insights
Consumer strength lifts Australia’s GDP — but the investment slump is the risk line every CFO should read
Australia’s June-quarter growth surprised to the upside as households and government spending outpaced a steep fall in public investment. The services economy is doing the heavy lifting, but the ...Read more
Investment insights
Gold prices surge to record highs amid economic uncertainty
In a remarkable start to September, spot gold prices have soared to unprecedented levels, breaching the US$3,500 per ounce mark. This surge has been fuelled by a complex interplay of macroeconomic ...Read more
Investment insights
First‑home buyers are rewriting the playbook and creating new profit pools
First‑home buyers remain stubbornly active despite higher rates, forcing lenders, developers and agents to retool products and processes. Beyond a checklist of steps, this is a strategic market that ...Read more
Investment insights
Disrupt or be commoditised: Why Australia’s brokers must rebuild their operating model now
A former Google executive’s warning to Australia’s brokerage sector is less a hot take than a strategic diagnosis: the industry’s economics are shifting, fast. AI-native competitors, policy-driven ...Read more
