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91% of asset managers have increased data protection to comply with GDPR

Thursday, May 17, 2018
Opalesque Industry Update - KOGER® Inc., a global financial services technology company, has released data that shows most asset managers have enhanced data protection as mandated by the EU General Data Protection Regulation (GDPR), which goes into effect on May 25. According to the study, 91% of asset managers have taken steps to comply with the GDPR, which is intended to safeguard consumer and investor data privacy and applies to all firms that do business in the EU.

According to the data, 63% of funds have updated data protection policies and procedures. 62% hired a data protection officer and 53% conducted training with employees involved in data collection and processing. Yet just 32% have set company policies for obtaining client consent to collect their data. Only 18% of fund managers have established company policies to destroy outdated client data, a key provision of the regulation.

"Facebook's example indicates how critical the issue of data privacy has become on a global basis. While asset managers have been working toward GDPR compliance, our study shows that only about a third have procedures in place for client consent to data use. Just a small number have set policies to purge the data of clients and investors who no longer do business with the fund. Along with the prompt disclosure of data breeches, these are both key requirements of the regulation to protect consumers," said Ras Sipko, KOGER chief operating officer.

The online survey was conducted in the first quarter of 2018 with 200 executives from hedge funds and private equity funds. 71% of the sample was composed of C-suite and senior executives and 29% of mid-level managers. 70% of respondents were from firms with $5 billion or more in total assets under management; 42% from firms with $10 billion or more AUM; and 16% from firms with $20 billion or more AUM.

KOGER provides software for investor services, compliance and business process management. The company's platform supports more than 8,000 funds with $2 trillion in assets. The company works with fund service providers and global asset managers, including hedge funds, private equity funds, retail funds and pension funds.

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