Survey Reveals Buy-Side Uncertainty Around Retail Distribution Review (RDR)

London - 26 October 2011

• Poll results indicate mixed views on RDR; 53% believe RDR’s impact will improve the firm, while nearly 30% believe it will restrict the growth of their business

• All respondents believe that RDR will have an impact

Bonaire Software Solutions, LLC, a leading provider of software solutions for asset managers, today announced the results from an EMEA asset management survey on Retail Distribution Review (RDR) conducted at the firm’s annual EMEA User Conference held in London on 13 October. Survey findings revealed that RDR will have an impact, but that the industry is divided on whether RDR will bring benefits or unnecessary costs.

Conducted in Q3 of 2011, Bonaire polled leading UK investment management firms on the impact of RDR. Seventy-five percent of firms reported that RDR will have a significant to massive future impact on their firm. No firms surveyed believed that RDR would not have some sort of impact.

However, survey results showed widespread uncertainty as to whether RDR would have a positive or negative impact on the UK asset management industry. Over half of asset managers believe that RDR will improve their businesses. On the contrary, 30% believe that RDR will restrict the growth of their business once passed on 1 January, 2013. While over 55% of firms believe that RDR will bring much-needed balance to the UK financial services industry, 40% believe RDR will create unnecessary cost.

“Clearly, the industry is unsure as to how RDR is going to truly impact their firms and whether the new legislation brings value or cost,” comments Christopher John, CEO of Bonaire. “We’re increasingly working with firms across the UK to help them better understand how to comply with RDR in a way that can reduce cost but also position them with a competitive advantage.”

RDR requirements are creating greater demand for technology that can enable compliance with new legislation and a higher degree of fee transparency. The survey results showed that most firms are highly unprepared for RDR, with 62% of firms acknowledging that they were either unsure as to their state of readiness or knew they were unprepared.

Mr. John continues, “Our survey results reflect what we are hearing amongst our clients – that 2012-2013 holds tremendous change for global buy-side firms as a result of regulation. We have continuously updated our solution suite and our REVPORT™ product to enable firms to address compliance challenges head-on so that they can remain efficient and successful, even in light of stringent legislation.”

The Bonaire REVPORT software enables firms to accurately bill fees, calculate retrocessions and rebates, process sub-advisor pay-outs and fee splits. Bonaire is working with a number of buy-side firms in the UK to comply with RDR.

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