KEYWORDS: Act on Investment Trusts and Investment Corporations, Asia Pacific, asset managers, Australia, Australian Prudential Regulation Authority, back-office, Financial Instruments and Exchange Act, FSA, hedge fund infrastructure, Hedge Fund Regulation, infrastructure, Japan, market participants, middle-office, outsourcing, regulatory requirements, service providers, UCITS, United Kingdom
Richard Fogarty, Akiko Terada
Japanese asset managers are becoming increasingly receptive to outsourcing investment servicing functions to help them stay competitive in the face of continuing economic challenges. While regulatory and cultural factors have typically discouraged wide-scale adoption of outsourcing, the environment is changing. By outsourcing back- and middle-office functions Japan’s asset managers can seek to reduce long-term investment in infrastructure and stay sufficiently agile to react to future opportunities. Outsourcing also provides the tangible benefit of allowing asset managers to focus on their core competency of investment.