Almost two-thirds of UK wealth managers polled recently about outsourcing mid- and back-office functions feared a loss of control but about the same percentage did so to save money anyway, according to Equiniti, the UK outsourcing and share registra firm.

With wealth managers facing high cost burdens from regulations, among other factors, the survey, taken from 60 senior UK executives in May and June, showed 70 per cent of them predict that all firms will outsource some or all processing requirements within five years.

Some 60 per cent of wealth managers fear loss of control through the outsourcing of their back and middle office functions; 66 per cent saw cost savings as a reason for outsourcing.

Among other findings, some 38 per cent of wealth managers have changed their view on outsourcing as a result of regulation; one-fifth of wealth managers blame a lack of outsourcing solutions as an argument for not outsourcing.  

The report found that 78 per cent of firms that have made the choice to outsource are totally satisfied.

Equiniti brought out the report as it established Equiniti Wealth Solutions, which is a centralised pooling of custody and business processes as well as a customer interface.

The firm administers over £11 billion (around $17 billion) in assets in custody.