As 2024 winds down, we at FundCount find ourselves reflecting on a year that’s been anything but ordinary. The financial services world didn’t just evolve this year—it transformed. Together with our clients, we tackled seismic regulatory shifts, embraced technologies once considered futuristic, and adapted to an industry that never stays still.
Through it all, we’ve had the privilege of standing alongside our clients, helping simplify the chaos and empowering decisions that shape futures. It’s been a year of growth, resilience, and problem-solving, as we navigated a sometimes bumpy, always interesting, road together.
In this article, we cut through the noise to bring you the real story of 2024. From key regulatory changes to game-changing innovations, we explore what mattered most this year and what it means for your 2025. Let’s dive in.
Key Developments in 2024
Technological Advancements that Leverage Innovation
AI moves in to financial services in a big way:
In 2024, Artificial Intelligence didn’t just make headlines—it made waves. What was once a buzzword has firmly embedded itself in the financial services toolkit. AI moved beyond theoretical discussions to reshape fraud detection, investment analysis, and even the way firms interact with clients. Generative AI, in particular, took center stage, enabling scenario modeling that’s as sophisticated as it is accurate. Imagine anticipating portfolio risks and opportunities with a clarity that was once unattainable—that’s the power AI delivered this year.
But there’s a catch: AI is only as good as the data it’s fed. Garbage in, garbage out. Investment managers and accountants must prioritize data integrity to fully harness AI’s potential. Clean, accurate, and comprehensive datasets are essential to generating reliable insights. Without this foundation, even the most advanced AI tools can lead you astray.
For asset managers, integrating AI isn’t about following a trend; it’s about staying competitive. From uncovering hidden risks in portfolios to automating time-consuming processes, AI-powered tools are proving to be the secret weapon for firms looking to boost efficiency and make sharper decisions. The challenge? Choosing tools that align with your specific needs while navigating concerns like data privacy and bias. Those who get it right will reap the rewards of better insights, faster decisions, and a serious edge in an increasingly tech-driven market.
Distributed Ledger Technology (DLT):
2024 was also the year Distributed Ledger Technology (DLT) gained serious traction. While blockchain often hogs the spotlight, DLT’s broader applications—especially in decentralized finance (DeFi)—quietly transformed how financial transactions are managed. Faster settlement times, reduced costs, and unparalleled transparency made it clear that DLT isn’t just a fringe technology; it’s a game-changer.
Interestingly, FundCount’s Unified General Ledger already incorporates similar technological principles, ensuring consistent, synchronized, and unified financial data across systems. Much like DLT, it leverages advanced internal structures to unify and distribute information, eliminating the silos and inefficiencies of traditional systems. This alignment puts our users a step ahead in embracing the potential of such technologies.
That said, progress comes with its share of hurdles. For firms steeped in legacy systems, integrating with decentralized platforms isn’t exactly plug-and-play. It requires careful planning, significant investment, and a willingness to rethink traditional processes. But for those willing to take the plunge, the potential payoffs are massive. DLT has already begun to streamline fund administration and improve cross-border transaction efficiency, offering a glimpse into a future where speed and transparency are the new norms.
For investment managers, the takeaway is clear: technologies like DLT aren’t just reshaping the back office—they’re setting the stage for a more agile and efficient industry. Whether you’re dipping your toes in or diving headfirst, understanding and leveraging these advancements will be key to staying ahead.
Regulatory Shifts and Preparing for Compliance
Crypto asset reporting regulations (Effective January 1, 2025):
The world of digital assets is about to get a lot more transparent—or at least that’s the aim. Starting January 2025, new regulations will require detailed disclosures for crypto assets, covering everything from transaction histories to valuations. For investment managers and accountants, this means stepping up your data game. Systems need to be ready to handle these demands with precision, ensuring that every trade, transfer, and holding is accounted for in real time.
This isn’t just a minor tweak to the reporting process; it’s a seismic shift in how digital assets are managed. The risks of non-compliance are steep, including hefty fines and reputational damage, making it critical to prioritize tools that integrate seamlessly with blockchain platforms. Automated reconciliation, real-time data updates, and robust reporting frameworks will move from “nice-to-have” to “non-negotiable” in the months ahead.
Modern Slavery Compliance (EU CSDDD):
Midway through 2024, the EU rolled out the Corporate Sustainability Due Diligence Directive (CSDDD), and its ripple effects are being felt across investment portfolios. This directive requires companies operating in the EU to identify and address human rights and environmental risks, including modern slavery, within their supply chains. For investment managers, this isn’t just a corporate responsibility issue—it’s a material risk.
Here’s where the impact comes in: managers investing in industries like manufacturing, raw materials, or agriculture, which often involve sprawling global supply chains, must now integrate stricter due diligence processes into their ESG frameworks. This includes ensuring portfolio companies adhere to these requirements, conducting detailed audits, and monitoring compliance across complex supply chains. Failure to do so can expose investors to reputational damage, legal liabilities, and potential financial losses if portfolio companies fall afoul of these regulations.
The CSDDD isn’t just about compliance; it’s about shifting the narrative. Investors who proactively address these challenges can position themselves as leaders in sustainability while mitigating the financial and operational risks tied to supply chain issues. For those still viewing ESG as a checkbox exercise, 2024 was a wake-up call.
Building Resilience Emerged as a Trend
Focus on cyber resilience:
The digital world isn’t getting any safer, and 2024 was a stark reminder of that reality. Cyber threats continue to escalate in scale and sophistication, prompting regulators to tighten cybersecurity requirements. Firms are now expected to embed resilience into their risk management frameworks with tools like multi-factor authentication, real-time monitoring, and regular stress testing becoming non-negotiable.
For investment managers, the stakes couldn’t be higher. A single breach can compromise sensitive data, damage reputation, and erode trust. Building a cyber-resilient operation isn’t just about compliance; it’s about survival in a landscape where attackers are always a step ahead. As threats evolve, so too must defenses. Firms that embrace proactive strategies and invest in robust cybersecurity infrastructures will find themselves better positioned to navigate the risks ahead.
ESG integration and reporting:
Under the Biden administration, ESG regulations flourished, emphasizing detailed disclosures on environmental impacts, social responsibility metrics, and governance standards. Investment managers were tasked with implementing advanced reporting tools to meet these expectations and deliver transparency to investors. By the end of 2024, ESG had become a defining feature of investment strategies, driven by both regulatory frameworks and market demand.
However, with the Trump administration set to return in 2025, we may see a significant shift in focus. Historically, Trump’s policies have favored deregulation and reducing compliance burdens on businesses. This approach could lead to a rollback of stringent ESG mandates, particularly around environmental and social reporting requirements. While some firms might welcome this reduced pressure, others will need to reconcile this deregulated landscape with persistent investor demand for ESG accountability, which often transcends regulatory requirements.
The potential rollback of federal ESG mandates doesn’t mean ESG will disappear from the agenda. Large institutional investors and international markets are likely to maintain their focus on sustainability and responsible investing. Firms that continue to treat ESG as a core part of their investment framework—rather than a regulatory obligation—will remain well-positioned to meet market expectations and attract sustainability-conscious investors.
For investment managers, the key takeaway is adaptability. As the regulatory environment evolves, firms will need to balance compliance with the shifting political landscape while staying attuned to the global and market-driven forces that keep ESG relevant. 2025 could very well be a year of recalibrating ESG strategies to align with new realities.
Looking Ahead to 2025
As we step into 2025, the excitement for what lies ahead is palpable. At FundCount, we’re ready to meet new hurdles head-on and uncover opportunities that drive growth and innovation. From advancing data analytics to enhancing automation, our focus remains on delivering tools that keep you ahead of evolving regulations and the ever-shifting demands of financial management.
This past year wouldn’t have been the same without you—our clients, partners, and team members. Your trust, collaboration, and insights have shaped our journey and the progress we’ve achieved together. In 2024, we charted new paths, solved complex puzzles, and celebrated shared successes that have set the stage for even greater achievements.
As the holidays bring a chance to reflect and recharge, we extend our heartfelt gratitude. Here’s to a bright and prosperous 2025, filled with innovation, progress, and shared success. Let’s make it another year to remember—together.
Warmest wishes and holiday greetings 🎄✨🎁,
The FundCount Team
