UK assets under management is clearly a growing market with value expected to grow “…from USD 14.20 trillion in 2023 to USD 22.53 trillion by 2028, at a CAGR of 9.67% during the forecast period” according to Mordor Intelligence. Yet many firms will face operational challenges when it comes to being able to scale their functions in order to meet this growth successfully. Working with a reputable outsourced partner such as Centralis Group can support legislative pressures affecting the industry and relieve the recruitment burden of managing FCA regulated reporting, amongst other functions, internally. It allows firms the bandwidth to focus on strategy. In this article we’ll discuss the challenges facing asset management firms and how Centralis Group can support their current and future endeavours.
Operational resilience and the FCA business plan
In light of March 2025 deadline for operational resilience, businesses must be able to prove that they remain within the impact tolerances for each of their business’s services through mapping and testing. The recent operational resilience plan by the FCA and PRA is well received by the Centralis Group team and provides ongoing guidance on how we can best support our clients as they continue to develop their digitisation strategies for the new regulatory requirements. Our team of industry experts not only stay abreast of changing regulations but also adopt tried and tested measures to fulfil these new guidelines.
Digital transformation and cyber security
It’s the FCA’s ambition to become a “data-led regulator,” they have discussed plans for: “major upgrade to our core regulatory system and improve our intelligence capabilities.” The FCA also plan to invest in cyber security and operational resilience – something affecting all businesses at a large scale. By tapping into the resources of Centralis Group you gain access to our team, who are professionals in data security and handling of sensitive financial information. In addition to this we invest in advanced technology and security measures which could improve your overall security posture and reduce the risk of data breaches if you were to handle this service internally.
Tax Compliance and evolving legislation
The relentless pressure on the UK government to tighten legislation results in an ever-evolving business environment. With news of the UK government “…consulting on how to reform transfer pricing, permanent establishments and Diverted Profits Tax legislation to make it clearer and easier to use” we want to support our clients with multinational enterprises to whom these laws apply. Transfer pricing is just a snapshot of one tax entity going through change; our seasoned team possesses in-depth knowledge of tax legislation, ensuring the proper utilisation of elections, reliefs, and tax deductions to foster our client’s business growth. This ensures that employers can fulfil their responsibilities to HMRC accurately, cost-effectively, and punctually.
In today’s climate and the benefits posed by outsourcing key business functions it reiterates the importance of collaborating with a reputable provider who has the capability to work with you as your business grows. It’s not only an operational benefit firms will notice when they outsource but also a financial one: “65% of global organisations have made cost savings of up to 40% on their support functions by either creating a shared service organisation and/or outsourcing elements of them,” according to a recent study by PwC.
Reference: https://www.mordorintelligence.com/industry-reports/uk-asset-management-industry/market-size
https://www.fca.org.uk/publications/policy-statements/ps21-3-building-operational-resilience
https://www.fca.org.uk/publications/business-plans/2023-24