Before delving into the AQMetrics outlook for 2020, let’s take a moment to stop, reflect and think about how 2019 has been.
AQMetrics Global Footprint
2019 was the most evolutionary for AQMetrics since inception. In addition to our established client base across Europe, the UK and the USA, AQMetrics global reach expanded extensively through 2019 with a new office in Paris and new clients as far afield as Canada and South Africa.
Award-Winning Industry Recognition
Having won numerous awards in 2018, AQMetrics continued the trend in 2019 with even more awards, most notably the ‘Best Regtech’ award at the Deloitte Financial Services Innovation Awards, ‘Best RegTech Solution’ at the HFM European Technology Awards 2019 and the ‘Best Compliance Services’ award at the Alt Credit Fund Intelligence awards.
AQMetrics was born of the belief that software should always be readily available to new users on demand. Our mission is to ensure that the end customer can successfully onboard their data into AQMetrics platform and start using the AQMetrics toolset over the web with seamless efficiency. With this in mind, AQMetrics successfully went live with Self Service Regulatory Reporting online in 2019. This means that anyone can now sign up and start sending regulatory reports to their financial services regulator direct from the AQMetrics website.
It was a great 2019 for AQMetrics and all signals are good for 2020. Here are three predictions for 2020 that indicate AQMetrics is well-positioned for an exciting year ahead:
Liquidity risk management will become a global regulatory focus
The fund management industry has been tested by 2019’s very challenging market conditions and despite its challenges, the industry has continued to gather good returns. That said, investors shook by the case of the Woodford Equity Income fund and M&G’s property portfolio suspension are asking questions about the resilience of the industry and regulators are inquiring about the robustness of liquidity risk management practices.
There are ongoing investigations by the regulators into how liquidity is managed in the fund management industry, particularly with investments in assets that cannot be sold quickly to meet investors’ withdrawals. After the case of the Woodford Equity Income fund it is clear that liquidity mismatches in funds are viewed by regulators as a threat to financial stability. Further, the regulators are now looking closely at property funds as contagion risks are likely on the cards following M&G’s property portfolio gating and suspension.
Open-ended funds investing in illiquid assets will long continue. It is however now more than ever important that the end investors are told in advance of liquidity risks and of how long it should take to get their money out. It is anticipated that the increased regulatory and investor focus on liquidity risk management will lead to an upsurge of customers on the AQMetrics platform in 2020.
Self Service Rules
Further, it’s likely that in 2020 we will see the new liquidity rules brought in by the US Securities Exchange and Commission being followed in the UK and the practice whereby funds separate their holdings into liquidity buckets becoming the norm. AQMetrics is confident that 2020 liquidity bucket rules won’t challenge its new or existing clients.
AQMetrics rules engine for compliance and risk monitoring across portfolio investments has been live since 2013 but it hasn’t been self-service until now. AQMetrics rules engine is being launched in Q1 2020 as a ‘Self Service’ online offering. This is great news for both Alternative Investment Fund Managers and Traditional Funds now concerned with the increased investor and regulatory focus on liquidity stress testing.
2020 will be the year of AQMetrics Artificial Intelligence
Throughout 2019 AQMetrics explored potential AI solutions for enhancing customer’s experience and making use of their lakes of historical data. AQMetrics management of its customers’ digital assets (like an investment portfolio) has made AQMetrics ripe for AI innovation. Innovation in the digitisation of customer, investor and regulators reports through increased use of AI is AQMetrics focus for 2020. With early adopters signed up for our Explainable AI workflows and reporting we are confident that 2020 is the year for AQMetrics to take its giant step into AI innovation. From 2020 on, AQMetrics customers will experience a journey through the platform like never before.
We look forward to supporting new and existing customers on their AQMetrics journey in 2020.