Asset managers delay tech investment on regulatory uncertainty

Will accelerate when clarity emerges

Upcoming regulatory hurdles such as MiFID II and the FCA Market Study could be slowing down the pace at which asset and wealth managers invest in technology and innovation, according to the latest CBI/PwC Financial Services Survey.

According to the survey, which covers the first quarter of 2017, total operating costs rose sharply in Q1 and are expected to continue at the same pace in Q2. However, despite asset and wealth managers continuing to invest in technology, the survey predicted that this will slow to a "dampened" pace over the coming three months. Mark Pugh, UK asset and wealth management leader at PwC, said regulation and legislation has been sited as the main constraint on business expansion for asset and wealth managers in the year ahead. "A slight reduction in the pace of technology spend could re...