The asset management industry is the least transformed subsector of the financial services industry and needs to do more than other subsectors in this regard, the Treasury said on Tuesday in Parliament. There are currently 130 asset management companies, few of which are black-owned. The Treasury submission was made during public hearings on transformation of the financial services sector organised by the finance and trade and industry committees. Treasury deputy director-general Ismail Momoniat said the financial services sector as a whole had to do more to transform and be transformative but the need was particularly acute among asset managers. Possible interventions to assist with the transformation of the asset management subsector included third-party branding, which is an arrangement where emerging managers rent a licence from an established manager. Momoniat said this was necessary because emerging managers were unable to secure a licence as a standalone entity. "A useful app...
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