Boutique money managers globally say regulation is the greatest potential hindrance to their success, with the proportion of those citing it as a major focus increasing to 42% compared with 2013.
In response to the same survey last year, conducted by TABB Group in association with SunGard, just 17% said growing regulation was the biggest threat.
The Dodd-Frank Act is the most concerning piece of legislation, with 65% of respondents citing this as having a high to moderate effect on their business. Anti-money laundering regulations and the financial transaction tax were also highlighted as growing areas of concern.
“For boutiques to succeed, it is no longer just a case of growing assets and returns; increased transparency, operational efficiency and the ability to deliver stable, risk-adjusted returns, within a resilient infrastructure, will be critical for the new boutique asset managers to help ensure operational stability,” said Rebecca Healey, senior analyst at TABB Group, in a news release.
More than 100 boutique money managers took part in the survey.
A spokeswoman for SunGard could not be reached for further comment by press time.
