Majority of asset managers increase data protection for GDPR

The majority of asset managers have increased data protection to comply with  the EU General Data Protection Regulation (GDPR), according to a recent study.  

KOGER, a global financial services technology company, has released data that shows 91% of asset managers have taken steps to comply with the regulation, which is intended to safeguard consumer and investor data privacy and applies to all firms that do business in the EU.

The data also shows that 63% of funds have updated data protection policies and procedures, while 62% have hired a data protection officer and 53% conducted training with employees involved in data collection and processing. However, just 32% have set company policies for obtaining client consent to collect their data, and only 18% of fund managers have established company policies to destroy outdated client data, a key provision of the regulation.

“Facebook’s example indicates how critical the issue of data privacy has become on a global basis,” said Ras Sipko, KOGER chief operating officer.

“While asset managers have been working toward GDPR compliance, our study shows that only about a third have procedures in place for client consent to data use.  Just a small number have set policies to purge the data of clients and investors who no longer do business with the fund.  Along with the prompt disclosure of data breeches, these are both key requirements of the regulation to protect consumers.”

The online survey was conducted in the first quarter of 2018 with 200 executives from hedge funds and private equity funds.

Koger provides software for investor services, compliance, and business process management, supporting more than 8,000 investment funds with $2trn in assets.

The company’s product suite automates transfer agency processes and administration; Know Your Customer (KYC) and Customer Lifecycle Management (CLM); and business process management, working with fund service providers, financial institutions and global asset managers, including hedge funds, private equity funds, retail funds and pension funds.

KOGER recently updated its private equity administration platform to manage the entire investor process, including automation of the distribution waterfall. It handles comprehensive PE processes, from customer relationship management to investor allocations and automation of the waterfall, as well as reporting, regulation and compliance.

Copyright © 2018 RegTech Analyst

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