Many fund managers still exist who prefer to handle middle- and back-office work with in-house staff.

But complying with the requirements of the financial reform bill may prompt them to consider outsourcing a lot of work. It's the ripple effect of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires careful attention to transaction records of all types. As a result, fund managers must evaluate their operational and regulatory risks, which in turn, will raise the bar on the data collection and reconciliation they will have to conduct.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.