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For James Allwin, managing director and president of Morgan Stanley Asset Management, rogue investors are the biggest threat to the fund management business. "The worst thing the in dustry can experience is to have rogue investors and for that to lead to more regulation," he says. Allwin has his eye on the UK's Investment Management Regulatory Organisation. "I support positive regulation but I hope recent incidents do not lead to more bureaucracy for those of us who have avoided the potholes in the road."
Another challenge facing the industry is the trend towards globalization which means expensive investment in technology and client servicing. "To be a multi-product, multi-currency and multi-market firm around the world requires a fair amount of infrastructure," says Allwin. Morgan Stanley is spending a considerable 13%Yo of its revenue on technology, a figure that has doubled in the past three years.
Because of the infrastructure requirements of a global business...