Minimizing regulatory risk for a large asset manager

A large UK-based asset management firm migrated more than 50% of its clients to a digital portal by partnering with eClerx.  

The client was seeing underlying inefficiencies and needed a sustainable solution to re-establish effective regulatory risk management. They approached eClerx to help streamline remediation, improve visibility, and bring greater control to its KYC processes.

The challenge

The client is a large asset manager based in the United Kingdom. With evolving business needs, their business processes had become more complex, to the point of being unwieldy. The staff were overwhelmed by overflowing inboxes, slow responses from counterparties, and multi-step workflows between internal teams.

Mistakes began to multiply, creating more issues and making the backlog even harder to clear. This led to client frustration and increased operational risks. The client needed a lasting solution to fix these inefficiencies and reduce operational risk.

Our strategy

To fix the problem at its root, the client adopted eClerx’s Compliance Manager platform alongside a dedicated support team, pairing regulatory compliance automation with human expertise.

This gave them several immediate benefits:

• A connected technology ecosystem: Compliance Manager combined robotic process automation, AI, and machine learning to improve communication and data sharing across teams.
• Real-time visibility: A comprehensive and easy-to-navigate dashboard gave users live analytics and reports, with oversight spanning regulatory, operational, client, and risk management insights.
• A 16X5 delivery team: eClerx provided an additional 16X5 team to monitor and manage the technology, remediation, and BAU processes within the organization.
• Human oversight of automation: The team supervised Compliance Manager to ensure it performed consistently, while analyzing customer information to report additional insights to the client.

How technology can reduce regulatory risk in asset management

Manual compliance work fails in a dozen small ways, until it all adds up. A missed email here, an unrecorded update there—nothing looks broken until the backlog is thousands of records deep, which is exactly where this client started.

eClerx deployed automation to fix the problem in three ways:

• Automation took over the repetitive checks: RPA and machine learning handled document collection, data matching, and record updates far faster than analysts working through inboxes, and they did it the same way every time. That consistency is what regulators want to see.
• Dashboards made risk visible: When regulatory, operational, and client data sits in one place, compliance teams get the benefit of real-time data. This turns financial services regulatory compliance from a periodic scramble into something you can actually monitor day to day.
• Humans intervened to minimize errors: Regulatory compliance automation frees humans from routine tasks, and lets them focus on exceptions and supervision. That is how regulatory risk in asset management genuinely comes down: fewer errors at volume, and a clean audit trail behind every remediation decision.

Building a proactive regulatory compliance framework

To avoid backlogs, an organization has to build its asset management compliance programs around a few habits:

• Map the obligations first: Know exactly which rules apply to each product, jurisdiction, and client type before designing any process around them.
• Create one source of truth: Most compliance errors trace back to the same data living in five different systems. Centralize client records so every team works from the same version.
• Automate repetitive tasks: Screening runs and periodic refreshes are rule-based work; hand them to software and keep analysts on the exceptions.
• Keep review cycles honest: Investment compliance obligations shift constantly, but scheduled policy reviews and trigger-based checks stop the framework from going stale.
• Measure remediation speed and volume: A backlog cleared slowly is still risk sitting on your books.

Regulatory compliance for asset managers is never really finished, but a framework built this way spreads the workload over time rather than letting it pile up.

The results:

These initiatives resulted in:

• Successfully migrated more than 50% of the clients to a digital portal
• 15K+ records remediated within a year
• Minimized operations and regulatory risk

The client continues to work with eClerx today. In addition to KYC services and the Compliance Manager platform, they are also introducing more of eClerx’s automation and generative AI solutions into their workplace.

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