Commentary from SunGard experts on news and events affecting the financial services industry.
Contributor: SunGard Viewpoint
Selwyn Wies, vice president for SunGard iWorks Core Administration solutions, discusses the popularity of worksite or voluntary benefits products, the opportunity for insurers to grow in this area, and the technology that can help them achieve agile growth and smarter operations.
LISTEN to the full Q&A here.... read more
executive vice president, boutique asset managers, SunGard's asset management business
Contributor: Ed Lopez
SunGard’s recent industry report with TABB Group on boutique asset managers highlighted the ‘big squeeze’ phenomenon, which sees the mid-tier plain vanilla-focused asset manager market shrinking, while niche-focused boutique asset managers and supersized asset managers enjoy economies of scale prosper in their relative markets.
Yet it’s not all good news for boutique asset managers – particularly for those in the Asia-Pacific region. The report found that the growing list of regulatory and compliance demands is now the biggest hurdle to setting up shop, and that the cost of regulatory compliance has now reached breaking point – boutiques identify regulatory compliance costs as the top factor that could make or break their firms over the next year. This is particularly true for Asia-Pacific-based boutiques looking to extend their investor base outside their home country to raise assets and gain more scale.... read more
Contributor: Michael Hallberg
This blog post was originally published by ISS Mag.
The financial services industry is facing a number of changes, particularly with regard to central clearing processes. Financial firms are looking to minimize margin as much as possible as the cost of capital has risen for many institutions while demands on capital for margin and collateral have ballooned. Estimates vary for the peak expected capital to be deployed in this way in the near future, but they are all measured in units of trillions of USD.
The listed derivatives model for charging margin has gone through a major transformation over the last few years. With the move from a one- to two-day standardized portfolio analysis of risk (SPAN) margin to value-at-risk (VaR)-based, five-day scenarios, the new calculations are increasingly being held within clearinghouses, not within the firms themselves, and therefore are difficult for firms’ risk managers to reproduce or reconcile.... read more
head of product management, Protegent, SunGard’s global trading business
Contributor: Rex Gooch
The introduction of the Bank Secrecy Act (BSA) in 1970 created the need for anti-money laundering (AML) compliance. Since then, regulatory enhancements and a slew of other regulations have been created to combat illegal financing and, in particular, terrorist financing.
Financial institutions have certain obligations under AML laws to implement internal controls, validate the proper functioning of their controls through independent testing, provide AML training for staff, and designate officers whose sole responsibility is to manage and run the firm’s BSA/AML compliance programs.
BSA/AML programs have evolved with increasing regulations over the years, but are they keeping pace with regulators’ expectations and the strategies used by creative (illegal) financiers? Trends in AML-related enforcements indicate they are not.... read more