The primary objective of this dissertation is to assess the impact of regulation on the asset
management industry. The secondary aims of the study are to investigate whether the South African
asset management industry regulation is aligned towards creating an enabling economic environment,
analyse the regulatory regime affecting the asset management industry and provide recommendations
regarding the strategies that may be adopted by asset managers, in order to effectively and
efficiently comply with existing and new regulations. A quantitative research methodology was
adopted. A survey was conducted by means of questionnaire design. The questionnaire was
administered to a sample of asset management companies registered with the Financial Services
Board.
Through empirical research the researcher gained in-depth knowledge regarding the impact of
regulation on the asset management industry. There is an appreciation of the economic importance of
the asset management industry, as a creator of employment and its effect on the growth and
development of the South African economy in general. The regulation of the asset management
industry contributes towards an enabling economic environment and development of the industry.
The rationale and objectives of regulation of the asset management industry, as it pertains to
systematic issues associated with externalities, market imperfections and failures, economies of
scale in monitoring, consumer confidence and the consumer demand for regulation, would seem to
justify the existence and development of compliance requirements. Regulation must however balance
the goals of competition and efficiency versus safety and soundness. The current regulatory
universe applicable to the asset management industry is justifiable, beneficial and is achieving
the intended objectives.
The rapid changes in regulation and costs of regulation of the asset management industry, which
entails utilisation of resources such as personnel, time and systems required and limitation on
investment freedom and creativity, remain the cause for
concern. However based on the outcomes of the research, there is adequate evidence to suggest that
the benefits of regulation of the asset management industry outweigh the costs thereof.
The outcomes of the research suggest that under the new paradigm, success will be determined by how
asset managers can solve several key challenges such as enhancing operational efficiency, complying
with the complex and rapidly changing regulatory environment and meeting the changing customer
expectations. The new era of compliance will force asset managers to focus on an enterprise-wide
integration of business strategy and not simply short-term tactical solutions. For asset managers
that effectively meet the challenge of the changing regulatory environment, substantial investments
in infrastructure or data architecture and implementation of an enhanced operating model will
provide opportunities to enhance profitability and ensure growth. / Economics / M. Com.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/22765 |
| Date | 11 1900 |
| Creators | Makonko, Mokgolobotho Devilliers |
| Contributors | Nhamo, S. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Format | 1 online resource (x, 116 leaves) : color illustrations |
Page generated in 0.0023 seconds