No sector of the securities and investments industry will be exempt from regulation, according to a new TowerGroup research report. However, the electronic trading and wealth management sectors may be best positioned to leverage opportunities for growth as consumers’ need for financial advice increases in 2009 and as advisors and wealth managers take a more holistic approach to managing client assets.
According to the research firm, firms operating in the securities and capital markets arena (the “sell side”) will continue to grapple with myriad implications of the credit crisis in 2009, including the deleveraging of positions and mere survival. Investment managers (the “buy side”) will increase their emphasis on risk management and overall efficiency while responding to institutional investors’ demands for investment performance through use of alternative instruments and new portfolio strategies.