As the regulatory, technological, and geopolitical landscape continues to evolve, investment operations leaders are under pressure to transform their operating models—without compromising control, compliance, or client trust.

In this in-depth conversation, Manish Khandelwal, Chief Operating Officer of UTI International, outlines how he is navigating regulatory divergence, managing vendor complexity, and preparing his organisation for a future where cross-border transparency and unified data flows will be the defining competitive edge.

1. Regulatory Complexity and Cross-Border Risk Are Escalating

From ESG tightening to localised regulatory barriers, fund managers face growing operational burdens just to maintain market access.

“Fund Management Companies are now being required to establish local entities or structures to access certain markets. This adds significant cost, increases operational complexity, and extends time-to-market.”

To meet these challenges, UTI International has reinforced its internal governance with a network of dedicated committees spanning operations, product oversight, and legal affairs. This structure enables more granular discussions and real-time tracking of evolving requirements—supplemented by jurisdictional advisors to ensure no blind spots.

It’s an approach rooted in responsiveness, but also in discipline—a principle echoed across their broader risk and operations framework.

2. Building Resilience: The Three Lines of Defence in Action

Rather than reacting to crises, UTI International’s risk management framework is explicitly designed to anticipate and contain them. Their three-lines-of-defence model—spanning business ownership, compliance oversight, and independent audit—does more than satisfy regulatory expectations. It drives ownership at every level.

The first line, business units, are accountable for embedding risk controls into their daily workflows. This is supported by a second line that enforces policy frameworks and actively monitors emerging threats. Finally, an independent audit layer ensures that these systems not only exist but are functioning effectively under scrutiny.

In an increasingly volatile global environment, this model offers operational clarity and faster resolution cycles, providing a backbone for managing cross-border complexity and internal risk cohesion.

This foundation of structure and accountability extends naturally into UTI’s approach to vendor strategy—another area where complexity demands coherence.

3. Consolidation Over Diversification: The New Vendor Strategy

Outsourcing remains a core part of UTI’s operational strategy, but decisions are increasingly framed around strategic alignment and simplification—not just cost.

“Despite having managed fund accounting in-house for decades, we recently outsourced this function to a third-party administrator. This reflects a strategic choice to stay focused on our primary objectives while leveraging specialist support.”

As vendors consolidate and AI-enabled platforms become the norm, UTI is reducing the number of partners it works with and deepening those relationships for greater integration and accountability.

“We’re consolidating KID/PRIIPs, EPT/EMT/EET reporting, and stress testing under one ManCo provider. It improves coordination, reduces complexity, and enhances delivery across regulatory requirements.”

This shift highlights a trend that’s gaining momentum across mid-sized firms: creating a tighter ecosystem of partners who are flexible, compliant, and tech-forward.

4. Resilience by Design: How Market Changes Are Absorbed

While the T+1 settlement shift caught many firms off-guard, UTI’s operations were unaffected. That wasn’t luck—it was foresight.

“We’ve always settled trades on a T+1 basis, even when T+2 was the standard. Our zero-leverage, long-only mandates and ‘cash-in-advance’ policy ensure that we never trade without confirmed funds.”

This proactive posture, combined with conservative execution policies, eliminates dependency on intra-day liquidity, margin buffers, or emergency borrowing—ensuring reliability even as market structures evolve.

In an industry where reactionary processes are often the norm, this kind of operational pre-emption becomes a competitive advantage.

5. Looking Ahead: The Real Challenge Is Harmonisation

Looking to the next 3–5 years, Khandelwal believes the greatest operational challenge will be reconciling two conflicting pressures: regulatory fragmentation and the race toward digital transformation.

“As fund structures become more global, the variability in regulatory requirements—across Singapore, Ireland, Luxembourg, Mauritius—is outpacing what many systems can handle.”

Despite the proliferation of automation and AI, many firms still face inefficiencies due to duplicated compliance tasks, manual reconciliation, and disconnected reporting standards.

“I’d like to see the industry move toward a more unified, data-driven model—where managers and investors have a consistent, real-time view of exposures and liquidity, regardless of domicile.”

That vision points to an industry future where technology isn’t just a lever for cost savings—but an enabler of clarity and trust across jurisdictions.

Conclusion: A Strategic Call for Alignment

For COOs like Manish Khandelwal, operational excellence is no longer about simply keeping the engine running. It’s about actively reshaping the foundation—systems, vendors, and governance structures—to match the speed and complexity of global fund management.

The takeaway is clear: in a world of fragmentation, resilience comes from clarity. And the firms that succeed will be those who build systems—both human and digital—that can navigate change without losing direction.

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