Category: Article
CCI product summary template overview
Lewis Davison from Confluence will take you through the key design principles and elements of our CCI product summary template.
Composites are a strategic tool; it’s time to start treating them that way
With the SEC Marketing Rule in full effect for over three years now, the regulatory environment for investment managers has fundamentally shifted -, and with it, how asset managers and private wealth firms market themselves and communicate with clients and prospects. Investment managers are required to ensure that performance advertising is accurate, substantiated, and presented […]
Reg SP compliance countdown: key steps before June 3
Watch the March After the Alert with Doug Preveza.
The Reg S-P compliance deadline is right around the corner
The SEC's 2024 amendments to Regulation S-P take effect June 3 for smaller firms. If your incident response plan, written information security program, & vendor oversight aren't in place, this is now urgent and the time to act is now
Testing, testing – CCI and the Consumer Duty
Intro The introduction of the UK Consumer Composite Investments (CCI) framework via PS25/20 represents a step-change in the design and delivery of fund disclosures. Gone are the rigid, regulatory-prescribed formats of old, in favour of a more flexible approach enabling asset managers, insurers and other in-scope product manufacturers to better tailor information delivery to end […]
New $300 FINRA gift limit and clarifications to Rule 3220
FINRA’s amendments to Rule 3220 (Influencing or Rewarding Employees of Others) mark one of the most significant updates to the gifts and gratuities framework in decades. While the headline change—the increase in the annual gift limit from $100 to $300—has drawn attention, the more meaningful impact lies in FINRA’s clarification of expectations around valuation, aggregation, supervision, and […]
Q1 2026 Factor Performance Analysis
Global equities in transition: factor rotation and market weakness
February 2026 Factor Performance Analysis
AI sell-off, mixed factor trends, and Canadian market outperformance
Q4 2025 Plan Universe Allocation & Return Analysis
Equity allocations drive defined benefit plan performance to post best annual performance since 2020.
Beyond the hype: Why 2026 is the year of “boring” AI and radical practicality
For the last two years, the investment management industry has been stuck in a cycle of anticipation regarding artificial intelligence. We’ve all seen the promising headlines of the impact of GenAI, but as we look toward 2026, the mood on the ground is shifting. Fatigue regarding “possibility” is setting in, replaced by a need for […]
Q4 2025 Preliminary Plan Universe Performance
Equity allocations drive defined benefit plan performance to post best annual performance since 2019.
Regulatory fines and the rising burden of compliance: How investment managers can stay ahead
In today’s global investment landscape, compliance is no longer just a checkbox exercise — it’s a critical factor in protecting firms from financial and reputational risk. Regulators are increasingly vigilant, and the consequences of reporting failures can be severe. From the BaFin €600,000 fine in Germany for voting rights disclosure lapses to scrutiny from the SECand the FCA, investment […]
Translating SEC exam priorities into action: How compliance leaders will refocus their programs in 2026
Going forward into 2026, the compliance landscape will be shaped less by brand-new rules and more by heightened expectations around program effectiveness, governance, and execution. The SEC’s 2026 Examination Priorities reinforce a familiar message: core obligations haven’t changed, but scrutiny has intensified. Fiduciary duty, disclosures, cybersecurity, and operational resilience remain front and center, with regulators […]
SEC division of examinations issues risk alert on marketing rule compliance: Key observations for investment advisers
The SEC’s Division of Examinations (the “Division”) recently issued a Risk Alert to provide investment advisers, investors, and market participants with practical guidance regarding compliance with the amended Rule 206(4)-1 under the Investment Advisers Act of 1940 (the “Marketing Rule”). The December 16, 2025 Risk Alert follows prior alerts addressing general prohibitions, compliance programs, books […]
FCA publishes final CCI rules
Almost a year since the initial consultation paper (CP24/30), and several months after the subsequent consultation paper (CP25/9), the FCA’s final Consumer Composite Investments (CCI) rules arrived via Policy Statement (PS25/20) on 8 December 2025. This starts the timer on a crucial shift in UK retail investment disclosures. There are many positive developments here that both simplify […]
Beyond Compliance: Insights from the 29th Annual GIPS® Conference
And what it means for your firm
Inside the world of GARP investing
Think of GARP — Growth at a Reasonable Price — like being a smart shopper or a savvy sports fan. You want quality, but you don’t want to overpay. Imagine you’re a baseball fan buying World Series tickets: GARP (Growth at a Reasonable Price) portfolios represent investment strategies that blend the key principles of both […]
Rethinking financial reporting with Unity
The challenge What reporting teams are up against: Manual processes that introduce risk resource pressure with growing demands limited visibility and oversight regulatory complexity and frequent updates. The Unity approach An integrated platform designed to simplify financial reporting Data integration Consolidates data from multiple sources to reduce manual handling. Validation tools Highlights irregularities for easier, […]
From challenge to advantage: Rethinking fund positioning for institutional investors
Institutional investors are reshaping how they evaluate and choose funds — demanding greater transparency, evidence-based differentiation, and deeper insights into factor and ESG exposures. However, fund distribution and sales teams still encounter strategic and technical hurdles when positioning their products in this landscape. Identifying genuinely comparable funds, understanding how investors create shortlists, and demonstrating a […]
Navigating the regulatory crossroads: Why increasing divergence matters for investment funds
Introduction In a time of rapid regulatory change, investment managers face a shifting landscape. As highlighted in a recent article by Funds Europe, our own Lewis Davison explores how the widening divergence in regulatory approaches across Washington, Brussels, and London is influencing funds’ structure, domicile, and investor reach. (Funds Europe) At Confluence, we believe recognising […]
A day in the life: Working behind the scenes of investment monitoring at Confluence
Insights from the front lines of regulatory compliance
Why factors matter
How understanding factor exposures helps investors evaluate manager skill, risk alignment, and portfolio performance.
How OTC data gaps are hiding massive risks and blocking fiduciary duties
Over-the-Counter Securities Without Terms = Risk Without Insight. The second post in a multi-part series on Fixed Income Transparency. Read more about the industry’s data double standard.
Navigating the new OCIO GIPS guidelines: Unlocking value with the updated OCIO GIPS® standards
OCIO GIPS reporting becomes mandatory December 31, 2025 On December 31, 2025, new GIPS requirements for OCIO (Outsourced Chief Investment Officer) portfolios take effect. This represents a fundamental shift in how firms must calculate, structure, and present performance to prospective clients. The challenges facing OCIOs Meeting these standards requires more than a disclosure update. Firms must […]
Stablecoins: Bridging volatility and stability in the digital asset space
What are Stablecoins? Stablecoins are a specialized type of cryptocurrency designed to maintain a stable value by being pegged to a less volatile reference asset, usually a flat currency like the U.S. dollar (USD), short-term treasuries, or even commodities like gold. Unlike traditional cryptocurrencies that often experience dramatic price fluctuations, stablecoins aim to maintain a […]
Why investment managers are choosing co-sourcing for regulatory reporting
As regulatory complexity increases and teams run leaner, co-sourcing offers a smarter way to scale—without giving up control.
Form PF: How investment managers can prepare in the face of uncertainty
With the SEC reviewing its Form PF amendments and the compliance date pushed to October 1, 2025 (for now), investment managers and private fund advisers are left in limbo. Here, we break down three possible outcomes, and help firms determine what they can do now to avoid being caught flat-footed. A rule in limbo: The […]
Surviving daunting regulatory exams: Key takeaways from compliance pros who’ve been there
Key takeaways Regulatory exams are faster, smarter, and still coming Coinciding with changes in regulatory priorities under new leadership, the SEC’s exam division remains active and committed to its risk-based approach, seeking to annually review approximately 10% of the 16,000 advisors servicing about $145 trillion in AUM. In addition, remote and hybrid exams are most […]
Five regulatory reporting market trends to watch: from complexity to efficiency
Key takeaways The regulatory landscape is complex and constantly evolving. Across financial services, firms are facing a wave of change: tighter deadlines, deeper disclosures, and shifting expectations from regulators and clients. Balancing deregulation in some jurisdictions while obligations expand in others, today’s compliance leaders are challenged to keep up and adjust faster than ever before. […]
The Canadian Fund Report is coming – are you ready yet?
A significant regulatory change is anticipated in the Canadian investment landscape, and many firms are still preparing. The Canadian Securities Administrators (CSA) have proposed a new Fund Report rule that intends to modernize the information shareholders receive. This initiative reflects similar disclosure reforms like the U.S. Tailored Shareholder Report (TSR) rule, which Confluence has supported […]
A new day might rise for India Middle-East Europe economic corridor
The India-Middle East-Europe Economic Corridor (IMEC) is a major new trade and infrastructure initiative with the potential to reshape regional connectivity. Signed on September 9th, 2023, the IMEC aims to bolster economic development by fostering connectivity and integration between Asia, the Persian Gulf, and Europe. Shared economic interests could provide a multilateral basis for dialogue […]
Is your disclosure process keeping up with accessibility expectations?
The European Accessibility Act (EAA) came into force on 28 June 2025. While the EAA’s direct application to Packaged Retail and Insurance-based Investment Products Key Information Document (PRIIPs KIDs) has not been formally confirmed, investment firms are increasingly expected to ensure disclosures are accessible to all audiences, especially when distributed digitally. A client recently came to […]
5 key considerations for regulatory readiness with managed services
Ensuring your firm is prepared to meet complex regulatory requirements is essential. Managed services can offer strategic support, but success depends on evaluating your firm’s needs and aligning with the right provider. Here’s a checklist to help you evaluate whether outsourcing is the right strategic move for your firm by identifying gaps, assessing potential benefits, […]
Impact of high-quality market data on modern investment strategy: Part 2
In Part 1, we explored how poor data quality can lead to costly investment mistakes, the increasing role of market data in investment policy and how quality data transforms investment decision-making. Here in Part 2, the focus shifts from the “Why” to the “How”. We explore risk management and compliance optimization, challenges and opportunities of high-quality […]
Solving the compliance conundrum
Managing escalating regulatory requirements with more efficiency
Impact of high-quality market data on modern investment strategy: Part 1
High-quality market data is foundational to sound investment decision-making in modern finance. Fund administrators, asset managers, wealth managers, and banks rely on data to value assets, assess risks, and identify opportunities. When this data is accurate, timely, and comprehensive, it empowers confident strategies and effective use of AI models. Poor data can lead to flawed […]
Future-proofing compliance
Compliance is no longer a static function. Asset managers face evolving regulatory challenges that demand continuous vigilance. Managed services can help firms stay ahead of these changes without costly disruptions.
Quality sub factors matter
Factor investing calls for identifying those stocks with the strongest characteristics for a given factor, but there is a large number of characteristics, or sub-factors, that can be used to define each factor. The typical monthly performance spread between sub-factors within each overall factor is between 100 and 200 basis points. During large market downturns, […]
How data complexity is reshaping regulatory reporting for asset managers
Regulatory compliance isn’t just about following rules—it’s also about managing data. As asset managers navigate increasingly complex regulations, they face growing challenges in data management, system integration, and timely reporting. With global regulators demanding greater transparency and faster filings, firms have no choice but to adapt. Here’s how data complexity is reshaping regulatory reporting and what asset managers can do to stay ahead.
Automation in GIPS® Compliance: Lessons from the Frontlines
Composites Insights Series Gain valuable insights on how automation enhances composites management, simplifies verification and ensures compliance with evolving standards. As Global Investment Performance Standards (GIPS®) continue to evolve, asset managers face mounting pressure to maintain compliance while keeping up with the SEC’s Marketing Rule and growing client demands. In our recent webinar —”Leveraging Automation […]
Buy American? A factor-based look at domestic exposure amid global trade uncertainty
Since the onset of heightened tariff tensions, markets have been shaken by volatility reminiscent of the early days of the COVID crisis and even the Global Financial Crisis (GFC). While policy outcomes remain uncertain, one strategic angle that is especially relevant to asset managers and fund selectors is investing in companies with low exposure to […]
Navigating the UK’s Short Selling and Position Limits Reforms in 2025
The UK’s financial landscape is evolving with significant regulatory changes in short selling and position limits set to take effect in 2025 and 2026. These reforms are part of HM Treasury’s broader strategy to modernize financial services post-Brexit, ensuring competitiveness and growth for UK markets. Here’s what asset managers need to know about the upcoming […]
Investors need a stronger fixed income analytics framework
The Transparency Imperative Thanks to the evolution of both holdings-based and returns-based analysis, investors have benefited from decades of growing transparency in equity markets. Detailed disclosures and third-party tools now offer granular views of portfolio risks and exposures, right down to the security level, giving investors confidence in what they own. In contrast, while Fixed […]
FCA proposes key simplifications under CCI framework in latest consultation (CP25/9)
On 16 April 2025, the FCA published a subsequent consultation (to CP24/30) on certain specific provisions under the incoming CCI framework (CP 25/9), which runs through to 28 May 2025. Within the same update, the FCA indicates that it expects to publish the final rules via a policy statement in late 2025. As such, if we […]
Adapting to ECB’s new reporting standards: Are you ready?
Changes to investment fund statistical reporting adopted by the European Central Bank (ECB) are set to take effect in December 2025, and national central banks, such as the Central Bank of Ireland (CBI) and Banque Centrale du Luxembourg (BCL) have published their jurisdiction-specific reporting requirements.
The significance of “Made in…”
In a world defined by globalization, complex supply chains, and recent trade wars, the label “Made in…” holds tremendous significance. More than just a label, it represents a complex blend of quality assurance, ethical production, cultural identity, and economic strategy. This article explores the evolving meaning behind “Made in…” labels, how they shape consumer perception, […]
Raising the bar: What the ECB’s reporting changes mean for investment funds
The financial industry is no stranger to regulatory evolution, but the European Central Bank’s (ECB) updated reporting requirements for investment funds mark a significant shift that will demand considerable adaptation from market participants. Set to take effect in December 2025, these changes will impact funds operating across the European Union and their administrators, introducing greater reporting frequency, […]
A closer look at the defense and aerospace industry
Growing focus on defense sector The defense and aerospace sector is generally more stable than other industries, as it is less affected by economic cycles. It also offers a diversified approach to portfolios while providing exposure to Large-cap companies with stable revenue. These stocks often increase in value due to geopolitical tensions and conflicts. In […]
Beyond borders: Why Canada matters more than ever for investors
Introduction: A timely conversation The global investment landscape is shifting, and Canada is at a critical juncture. With tariffs, political shifts, and economic realignments shaping the market, investors are reassessing Canada’s role in their portfolios. On a recent Confluence-hosted webinar, industry experts gathered to discuss why Canada is more relevant than ever for investors—and how […]
Women in Focus – Katie Kiss
We are honouring Women's History Month with our blog series, which features the powerful stories and inspiring voices of some of Confluence's remarkable women.
Women in Focus – Kirsten Garrett
We are honouring Women's History Month with our blog series, which features the powerful stories and inspiring voices of some of Confluence's remarkable women.
Form PF 101 requirements and deadlines
An overview of the SEC's latest private fund reporting requirements and deadlines.
5 things to consider when using AI in financial services
Artificial intelligence (AI) is reshaping the financial services industry, offering tools to revolutionize how firms handle reconciliation, compliance, and data management. But as exciting as these advancements are, adopting AI comes with challenges and considerations. From creating consistency in an ever-changing regulatory environment to maintaining control over sensitive data, here are five key ways AI […]
The impact of tariffs on the market: Lessons from 2018-2019 and what it means for Trump 2.0
What does recent history tell us, about the potential impact of tariffs during Trump 2.0? In 2018, President Donald Trump imposed sanctions on various products using a broad range of seldom-used US trade laws, citing the need to protect America’s national security. This sparked a trade war that led to multiple disputes with China and […]
The Importance of an Annual Updating Amendment for Investment Advisors
Investment advisors have a crucial responsibility: maintaining transparency and compliance with regulatory standards. One key aspect of fulfilling this responsibility is filing an annual updating amendment of Form ADV with the Securities and Exchange Commission (SEC) or the state regulator for state-registered firms. This filing must be made within 90 days of the advisor’s fiscal […]
SFDR in 2025: fixes, challenges, and what’s next
It doesn’t feel like five minutes have passed since the EU’s Sustainable Finance Disclosure Regulation (SFDR) first became applicable, particularly the product-level disclosures that took effect in January 2023. Expected changes to this framework should be finalized in 2025. Meanwhile, the UK’s ‘Sustainability Disclosure Requirements’ (SDR) framework has taken a different approach to disclosures. Despite […]
MAGA Two.0
Although U.S. elections have always been highly significant for both global and national stock markets, the president’s influence on the economy and markets is typically indirect and limited. While changes in the White House create uncertainty in the markets, and uncertainty is generally bearish, changes caused through fiscal policy and economic agendas have a more […]
Ahead of the curve: Why private wealth managers should adopt Composites
Composites Insights Series The wealth management industry is on a rapid growth trajectory, with AUM projected to increase by as much as 50% between 2020 and 2025, according to the Business Research Company1. This means there is an incredible amount of opportunity in the space, but it also means that client demands and regulatory burdens […]
68% of financial firms say AI in risk and compliance is a top priority
Here are some best practices for thoughtful AI adoption. A guide to risk mitigation and adoption of AI technology in financial services
Mastering 13f-2 Reporting: Key Insights for Staying Ahead of the Curve
With the new 13f-2 reporting rules fast approaching, the latest webinar from Confluence and SEI Regulatory Services, Navigating 13f-2 Reporting: Expert Insight and Strategic Approaches, shed light on the critical aspects of compliance. With a compliance deadline of January 2, 2025 approaching fast, the session offered an in-depth look at regulatory expectations, practical steps for compliance, […]
Surviving Form PF: What to expect and how to prepare with confidence
Confluence recently hosted a webinar, Prioritizing Form PF – Before It’s Too Late, where experts from Confluence and international law firm Mayer Brown explained the changes required for all filers, and especially large hedge funds advisors who will need to conduct a holistic review of their Form PF preparation processes efficiently and accurately. The webinar was […]
Efficient style frontier
Three industry experts sat down with Confluence to discuss the Efficient Style Frontier -how technology and industry expertise can help balance growth and value factors for optimal risk-adjusted returns. On the agenda were: The panel included Style Analytics clients from three very different firms. While each described a unique perspective and approach, one consistency was […]
Omnia unveiled: Revolutionizing regulatory reporting
Welcome to the next generation in regulatory reporting technology! We recently introduced Omnia, a next-generation application that helps asset managers and fund administrators streamline and enhance the efficiency of regulatory reporting, and hosted a webinar exploring current market challenges and how Omnia delivers real business value, demonstrated through a live demo. Here are the highlights.
Form PF overhaul: Are you ready for the biggest changes yet?
The Securities and Exchange Commission’s (SEC) third set of Form PF amendments in the past 12 months-arguably the most substantial yet-is set to significantly impact all filers, with large hedge funds expected to bear the brunt of these changes. What will this mean for your firm’s compliance team, risk controls, and day-to-day operations? Does your […]
Introducing the 2024 TabbFORUM NOVA awards: honoring top innovators across financial markets
The annual TabbFORUM NOVA Awards honor the financial industry’s ongoing commitment to technology-driven innovation by recognizing 40 organizations for their outstanding recent and sustained achievements. These selections from across the capital markets are the result of TabbFORUM research, with consideration given to nominations and recommendations solicited from the community. It takes into account the role […]
Amplifying diversity – women in portfolio management
Although portfolio management has traditionally been a male-dominated industry, there is strong evidence suggesting that historically, funds managed by women have outperformed those managed by men. A study by Goldman Sachs found that 48% of female-managed funds outperformed the market during a specific period, compared to only 37% for all-male funds. Women-led funds also demonstrated […]
Integrated multi-factor risk engine raises Revolution Analytics to new high
With the new Confluence-Northfield partnership, Revolution users gain seamless access to world-leading multi-factor risk attribution and performance analysis. The power in multi-factor analysis? Actionability, through better understanding. With greater insight into the combined effect of factors driving performance and risk (market, credit, operational), financial institutions gain a competitive edge in decision-making on risk management, investment strategies, performance attribution and regulatory compliance.
Decoding the SEC’s latest form PF amendments: What you need to know before the March 2025 deadline
The SEC’s latest changes to Form PF are here, and they’re shaking things up in a major way for US private fund advisors. Forget business as usual—these changes require a holistic review of existing reporting methodologies and processes. This represents a significant challenge for private fund advisors and their service providers, but it can also […]
Breaking down silos with enterprise data management
Investment management companies have traditionally organized their operations into front, middle, and back-office groups. While this structure has served its purpose, the changing landscape of data management necessitates a shift in how these groups interact. The siloed approach to enterprise data management, based on organizational boundaries, is becoming increasingly impractical. We explore the reasons behind […]
Prism analytics: use case for small cap growth
3 questions to set your active US SCG distribution strategy
The new SEC short selling rule will keep us occupied for quite some time
Much ink has lately been spilled over the new Short Sale reporting rule in the U.S. New Rule 13f-2 was adopted by the Securities and Exchange Commission (‘SEC’) to shed more light upon Short-Selling in the wake of GameStop saga. It is no wonder that those concerned have raised pertinent questions in this regard.
How are investors impacted by the modernization of the beneficial ownership reporting in the US?
The modernization of the Beneficial Ownership reporting has been a long-discussed topic by the Securities and Exchange Commission (“SEC”) in the U.S. It therefore comes as no surprise that the adoption of amendments to Regulation 13D-G a few days ago is big news, as a large number of investors will have to comply with the […]
Operations incorporating climate/ESG disclosures into your investment operations
As the first wave of UK large asset managers and asset owners publish their FCA mandated ESG SDR entity and product reports, lessons can be learnt from similar exercises in the EU.
SEC Marketing Rule: Simplifying & automating composites and GIPS® reports
This series focuses on the key insights from our recent webinar, Composites Best Practices: Staying ahead of the composites compliance and regulatory curve. Our panel featured composites and Global Investment Performance Standards (GIPS®) industry experts, plus esteemed panelists from Guardian Performance Solutions LLC and Madison Investment Services.
SEC Marketing Rule: Best practices for simplifying and automating composites and GIPS® reports
Navigating the intricate landscape of investment management demands a delicate balance between regulatory compliance, operational efficiency and delivering accurate and meaningful data. As firms grapple with managing numerous composites, meeting tight deadlines, and adhering to evolving industry standards, the need for simplification and automation becomes increasingly evident. Here, we explore how firms can harness the […]
SEC Marketing Rule: Do you switch to model fees?
Under the GIPS® Standards, investment advisers can include non-fee-paying accounts in composites without having to apply a model fee, so long as the composite’s GIPS Report includes appropriate disclosure. However, the SEC now expects advisers to apply a model fee to these non-fee-paying accounts, to provide more accurate and transparent information to potential clients that’s more […]
Behind the Curtain – SEC’s Risk-Based Approach to Examinations
The SEC Division of Examinations (“EXAMS”) issued a Risk Alert describing EXAMS’ risk-based approach for selecting registered investment advisers to examine and determining the scope of examinations. The Risk Alert included an example of a typical initial request for documents and information, as well as examples of additional information that EXAMS may request during the examination process. The Alert identified three (3) components used to assess an adviser’s risks and scoping examinations.
Takeaways from the SEC’s new private fund adviser rules – build and plan for successful implementation
The private fund regulatory landscape just got more complex with the August 23 SEC adoption of these long-awaited private fund rules, which were first proposed 18 months ago in the face of industry pushback. These rules align with the agenda by SEC Chairman Gary Gensler, who has been steadfast in his commitment to enacting a […]
SEC Marketing Rule: How does it affect composites?
The SEC Marketing Rule presents many opportunities for firms to streamline performance and composite reporting. However, firms face the challenges of managing many composites, tight deadlines to produce information, and manual or spreadsheet-driven processes across multiple facets and regions of the business. How can firms use composites when advertising related, hypothetical and representative account performance? […]
Navigating the next market downturn at TSAM London
Now that the TSAM – the Summit for Asset Management in London – is over, it is time to look back and delve into the subject of market downturns, as discussed during the regulatory roundtable “Navigating the next market downturn,” which was part of the Confluence-sponsored Regulatory & Compliance stream.Given that the two-day conference brought […]
As pressures mount, SEC finalizing its rule for companies’ climate-related disclosures
Global scientific consensus and domestic political interests compete for its attention The SEC’s forthcoming Final Rule, requiring climate-related disclosures by US companies, is placed here in the context of recent global climate developments. This provides some perspective on the pressures faced by the SEC, as it finalizes its much talked-about 490-page proposal. We conclude with some important action items for investment firms, who will rely on these disclosures for their sustainability investment analyses and compliance functions.
HEADS UP: SEC Division of Examinations
identifies gaps and signals need for main office policies and procedures to be applied at branch office locations
SEC revises Form PF rules
The SEC adopted changes to Form PF impacting large hedge fund advisers and all PE advisers.
Incident reporting on the SEC’s radar as regulator seeks to mandate a federal breach notification standard
A steady increase in the threat that data breaches pose to individual investors has spurred the Securities and Exchange Commission to revisit the issue of safeguarding customer information. On March 15th, 2023, the SEC published proposed changes for Regulation S-P. The proposal is designed to provide registered investment advisers’ clientele with sufficient notice of any data […]
Making the RightAdjustments: Managing LiquidityRisk for SEC Rule 22e-4Compliance
Introduction One of the many lessons learned from recent financial crises is that under unpredictable circumstances, the liquidity of traded financial instruments can nearly vanish. As we saw in those instances, this lack of liquidity coupled with the highly interconnected nature of modern derivatives, can lead to massive fund redemptions, which naturally increases the pressure […]
Katie’s story
We’re celebrating Women’s History Month. Highlighting just some of Confluence’s amazing women
Aspasia’s story
We’re celebrating Women’s History Month. Highlighting just some of Confluence’s amazing women
Xiang’s story
We’re celebrating Women’s History Month. Highlighting just some of Confluence’s amazing women
Michele’s story
We’re celebrating Women’s History Month. Highlighting just some of Confluence’s amazing women
Composites: The next competitive advantage
Client demands and regulatory mandates in the investment management industry show no signs of slowing down in the years ahead. Thriving in this shifting landscape means asset managers need to create meaningful composites which are essential in the fair presentation, consistency, and comparability of performance over time and among firms. To achieve this firms need […]
Confluence’s top 5 most popular insights of 2022
As we leave 2022 behind and 2023 begins, make sure you didn’t miss a thing last year with this recap of our top insights.
Why integrating ESG data and analytics into your risk and performance ecosystem is critical to staying competitive
As sustainable finance disclosure regulations bring focus on ESG data and analytics, more data is becoming available for investors to assess companies’ performances. This in turn is placing additional pressure on firms to produce accurate reports at a greater and greater scale. Institutional asset managers, fund administrators, custodians, third-party providers – essentially any firm with […]
Liquidity risk spotlight: Increased regulatory scrutiny is our biggest threat
Inflation and interest rate spikes, the likes of which we haven’t seen in a generation, can cause serious market dislocations and liquidity crunches. Regulators around the world have taken notice. The increasing pressure of regulatory requirements around liquidity risk demands a more precise and holistic view of fund liquidity. The recently introduced Liquidity Stress Test […]
ESG: As COP27 highlights climate urgency, notions of “sustainability” fracture
COP27, the UN’s annual climate change conference held this year in Egypt from 6 to 18 November with about 100 heads of state in attendance, can be seen as a microcosm of the challenges and debates that have plagued the concept of “ESG” or “sustainability” since those terms came into vogue several years ago. The COP27 […]
ESG Strategy: Think regulation, data, and budget
This blog was original published at Markets Media on October 7, 2022. Sustainable investing disclosures in the U.S. are currently governed by general fraud prohibitions in advertising and not by formally defined rules, apart from interpretive guidance issued by the SEC in 2010 about certain material impacts caused by climate change. In the absence of ESG regulations, investment managers […]
Navigating the SEC marketing rule: Keyways to compliance
The SEC’s new Marketing Rule that came into effect last year expanded the definition of advertising. It allows for marketing via new channels and enhances existing disclosure requirements. It will have significant compliance impacts on advertising and cash solicitations for investment advisers registered with the SEC. Replacing both the old advertising and solicitation rules, the […]
Charting a path to SFDR deadlines: Optimizing ESG and EET data collection, quality and reliability
The Sustainable Finance Disclosure Regulation (SFDR) is rapidly progressing towards the January 1, 2023 deadline, and the industry is in the process of managing and solving a variety of challenges. Here, we provide a brief timeline of the work that remains, discuss the challenges of the European ESG Template (EET) and ESG data, and the best ways […]
Charting a path to PRIIPS KID deadlines: Four months left to make significant data, calculation and filing changes
Conversations with investment firms, management companies, fund administrators and industry attorneys have ramped up this summer as the industry prepares for the European Union’s (EU) new Packaged Retail and Insurance-based Investment Products (PRIIPs) reporting requirements by January 1, 2023. Firms will need to adjust to new formats, content and calculations for preparing their Key Information Documents (KIDs) […]
Are you ready to comply with the new SEC marketing rule?
Time is running out With the upcoming deadline of the 4th November, 2022, the new SEC Marketing Rule requires firms to create composites around similarly managed portfolios for performance reference, even if they are not GIPS® (Global Investment Performance Standards) Standards compliant. This means that firms must establish policies, procedures and controls, ensuring that all […]
Key ESG strategy considerations
A Streamlined Approach to ESG Strategy ESG investing is at the forefront of the industry and with ESG-related regulations coming soon, having a streamlined ESG strategy in place is key for building and retaining competitive advantages. Demonstrable improvements in the breadth and depth of ESG information, tools and frameworks are evident throughout the investment management […]
ESG regulations take hold in Europe with other regions set to follow
The EU’s comprehensive sustainable finance action plan aims to mandate that companies integrate sustainability risks into their investment management and disclosure processes, including their impact on the market environment. Its goals are to: Companies are regulated under the Non-Financial Reporting Directive (NFRD) and soon the Corporate Sustainability Reporting Directive (CSRD), while financial products will be […]
Five PRIIPs reporting challenges asset managers need to know
Time is running out to comply with the European Union’s (EU) new Packaged Retail and Insurance-based Investment Products (PRIIPs) reporting requirements, and adjust to new formats and content for preparing key investor documents (KIDs) by January 1, 2023. On top of this, the regulation will extend to all Undertakings for Collective Investment in Transferrable Securities (UCITS) products that have an exemption in […]
Key considerations when replacing UCITS KIIDs with PRIIPs KIDs
With the ever-changing regulations and the strain they place on internal resources, it is increasingly important that firms have a streamlined and holistic approach to their data, calculations, and processes to meet the evolving regulatory requirements. In a few short months, asset management firms, insurance companies, and other financial institutions will need to comply with […]
SEC Rule 22e-4: Meeting compliance standards and managing liquidity risk
As we’ve learned from recent financial crises, unpredictable circumstances can cause the liquidity of traded financial instruments to nearly disappear. That lack of liquidity, coupled with the highly interconnected nature of modern derivatives, can lead to massive fund redemptions, naturally increasing the pressure to sell into thin markets, causing a rapidly spiraling cycle of collapsing […]
Navigating ESG’s complex regulatory landscape
Amid growing demand from socially conscious investors, asset managers have worked tirelessly over the past decade to create ESG investment vehicles. While the pandemic heightened mainstream interest in ESG, the trend is projected to continue its acceleration as it has become widely recognized as a key value driver. With these developments, regulators the world over have naturally taken notice, […]
FTF Exchange Podcast: Seeing the ESG Requirement as a Data Challenge
In a new FTF Exchange podcast, Todd Moyer, President and Chief Operating Officer (COO), Confluence, explains that financial services firms that want to meet investor requirements for Environmental, Social, and Governance (ESG) compliance will find that it boils down to a data challenge that would be helped by greater transparency. “An area of focus for Confluence, […]
