Cost pressures risk third-party mancos ‘skimping’ on regulatory oversight: experts – Ignites Europe

Cost pressure on third-party management companies has reached “unsustainable levels” and could compromise regulatory oversight, experts have said.

External management companies generally oversee funds run by smaller investment managers that have outsourced different functions to reduce their operating costs and to enable them to focus on portfolio management.

Competition between third-party mancos to attract asset management clients has led to downward pressure on pricing.

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