Fund administrators in Ireland, like people in most industries, are keenly focused on modernising their business models through the use of automated processes and innovative, cloud-based solutions.
Fund Recs, a reconciliation software company, partnered with Norio Ventures, a specialist advisory firm, to launch the Adminovate conference in 2017.Now in its third year, Adminovate is a forum for asset managers, fund administrators, fintech start-ups, service providers and more to “learn and share perspectives on the real risks facing the industry and to kickstart the next wave of innovation to find viable responses and safeguard Ireland’s industry contribution.”
With a sold-out attendance of 300 people at Trinity College in Dublin and a broad range of speakers, the conference in January gave our team plenty of food for thought. We’ve shared our key takeaways with you below.
The Central Bank of Ireland (CBI) continues to cast a watchful eye over outsourced fund administration. It’s been three years since the CBI published research into outsourced jurisdictions, which showed that 60% of fund administration business contracted to Irish entities was outsourced to overseas jurisdictions like India and Poland. Since then, firms have been contemplating relocating their services back to Ireland to comply with CBI guidelines, controls and best practices. This was evident at Adminovate, with many firms already starting the relocation process.
Several innovative fintech companies exhibited new tools at Adminovate. One that caught our eye was a web-based platform for managing, auditing and distributing authorized signatory lists. The task of updating lists, which could take days, can now be done in minutes—while at the same time reducing the costs associated with staff turnover. Also exhibiting was a firm that developed an automated audit confirm application. This timesaving application brings all the stakeholders in the process onto one platform, allowing for a seamless audit confirmation.
3. Ireland Domiciliation
As a direct result of Brexit, huge numbers of UK asset managers are domiciling to Ireland to remain within the EU and have access to European investors. This has given further momentum to the asset management industry in Ireland and, by extension, the fund administration industry. Along with the return of previously outsourced services mentioned earlier, many fund administrators are considering opening regional offices across Ireland, allowing them to take advantage of lower costs and higher staff retention to maximise their fund administration offering.
4. Data Management
Information security and management remains a key focus for all market participants in the post-GDPR environment. Everyone at Adminovate 2020 recognised the importance of compliance with the legislative requirements and acknowledged the technical and organisational measures required to meet these obligations. Firms are focusing on the risks related to processing personal information and are looking at innovative approaches to the functions, controls and systems used to protect and secure that information.
The overarching theme at Adminovate 2020 was: If you don’t start innovating, you will be left behind—no matter the size of your firm. Firms built on manual processes will be inefficient, inaccurate and, very soon, obsolete. Innovation can bring savings in both time and cost, while eliminating any potential errors in a firm’s day-to-day processes.
At CSC, we believe we’re well-placed to enter the fund administration market here in Ireland. We are a privately owned provider, driven by technology, focused on service, and dedicated to solutions. To learn more, contact our managing director, Liam McHugh at email@example.com.