Asset managers across the world are increasingly turning to technology to help them manage compliance and regulatory burdens.

Asset managers worldwide are ramping up investments in data management technology to help them adhere to tight regulatory and compliance guidelines, according to new statistics from State Street.

“New global regulations and volatile market liquidity is prompting more than half, or 56 per cent, of asset managers and asset owners to increase their technology and operational capabilities over the next year to manage financial and other data to meet regulatory compliance deadlines,” the firm said in a statement.

State Street surveyed more than 300 asset managers and asset owners across the world as part of its 2016 Liquidity Survey.

The results shows that despite certain US compliance deadlines being a year away, many fund managers have begun taking steps to ensure they meet requirements.

The US Securities and Exchange Commission modernized its standards for data collection, reporting and disclosure practices. Fund complexes with more than $1 billion in net assets must file new regulatory reports beginning June 2018, and open-end funds must establish and administer written liquidity risk programs.

“Across the globe, regulations are increasingly focused on data transparency, portfolio holdings, valuations and liquidity, as well as increased reporting to both investors and regulators,” said Brenda Lyons, executive vice president and head of the specialized products division for State Street. “Consistent with this, in the US, the new SEC rules are focusing on monitoring, managing and reporting a broad spectrum of data. Fund management and boards have been actively evaluating and planning for how to best address these regulations within their operations to achieve compliance by the specified date.”

Meanwhile, a recent State Street report titled Let’s Talk Liquidity: Opportunities in a New Market Environment found that 42 per cent of institutions were concerned about their ability to meet liquidity compliance rules and provide accurate status reports to regulators, as well as their own management boards.

Nearly half, or 47 per cent, said they intended to rely on external partners to improve compliance measures.