The new reality of global fund administration in 2026

Growing complexity across global fund jurisdictions

As fund managers increasingly operate across multiple cross-border jurisdictions, it naturally follows that fund structures will become more complex too.

Operating simultaneously in jurisdictions such as Luxembourg, the Channel Islands and the Cayman Islands, offers clear strategic advantages, but it also introduces layers of regulatory nuance and operational expectations, making clear coordination challenging.

In other words, complexity is scaling up – faster perhaps than traditional operating models were ever designed to handle.

Failure to develop a coherent strategy could expose global fund structures to a vast array of risks. As we start 2026, operational alignment is no longer a support function but a strategic priority for fund managers and Mourant.

Why operational fragmentation is a problem for fund managers

Some of the largest global funds operate across multiple jurisdictions, which can trigger a range of administrative difficulties for fund managers.

For example, Luxembourg operates under the EU Alternative Investment Fund Managers Directive (AIFMD), offering full EU marketing passport rights – a key advantage for managers targeting European institutional investors. However, the regime is prescriptive and requires a regulated Alternative Investment Fund Manager (AIFM) with formalised risk, valuation processes and regular reporting to the CSSF.

In comparison, the Channel Islands (Jersey and Guernsey) have a less onerous regulatory regime. Typically, funds access EU investors via National Private Placement Regimes (NPPRs), which don’t require full AIFMD compliance. The result is faster time-to-market and lower operational complexity, offering cost efficiency without sacrificing governance standards.

The Cayman Islands offer similar flexibility, providing a tax-neutral platform that is widely accepted by global investors.

What is immediately clear is that each jurisdiction operates under a distinct regulatory and compliance model, making it difficult for managers to implement a single, scalable end-to-end operating framework.

The resulting fragmentation of data, operations, and different regulatory obligations limits the consistent application of governance, risk, and control frameworks across the organisation. In some cases, core operational activities are duplicated across jurisdictions, denting efficiency and increasing costs, the very advantages that the fund was set up to achieve in the first place.

Managers are investing in AI to address inconsistent rules on data governance. As platforms scale and stretch across jurisdictions, data ownership between administrators and internal teams can be a roadblock. Equally, poorly implemented technology can exacerbate fragmentation rather than resolve it — turning an efficiency problem into a governance and risk issue.

Why regulatory differences increase risk

When a global fund is subject to a range of regulatory obligations, risks multiply. Compliance can vary by scope, format and timing, and rules that appear aligned on paper often diverge in practice, heightening the risk of misapplication and reputational damage.

Addressing fragmentation

When it comes to tackling fragmentation, fund managers are already moving towards more joined-up operating models, using shared technology to improve oversight while still meeting local regulatory requirements. 
In addition, funds are standardising core processes such as data capture, reporting, and cash controls. Consolidating and reconciling data from multiple sources is fundamental: it reduces data duplication and drives greater consistency across all jurisdictions.

But fragmentation and sound data governance are about more than efficiency and regulatory compliance. It’s a reputational issue, too. A comprehensive strategy can not only save a fund from a fine but avert any embarrassment that could cause prospects to think twice.

The most resourceful managers will choose their partners with care and invest in new technology with intention. They will streamline fragmented processes, automate workflows, and enhance data visibility across the business, and they will do so because having consistent, timely, and comparable reporting across jurisdictions aligns with investor expectations and creates a robust basis for future partnerships.

Tackling regulatory divergence and compliance risk

When a global fund utilises multiple different jurisdictions, managing the numerous regulatory and compliance risks can feel like something of a juggling act. However, the right technology can lift the strain from individual employees.

For example, automation and workflow tools limit the need for manual checks and help teams manage different regulatory deadlines and requirements as structures grow and develop across different areas. It saves time, it saves resources, and as long as there is still human oversight, it can ensure total operational alignment from Luxembourg to Cayman.

Global funds should also survey their current operations and consider what services and processes are insourced, co-sourced or outsourced – and whether the various different groups are talking to each other. Clear communication between insourced central teams and outsourced local teams speed up regulatory responses, delivering clarity and confidence to managers and investors.

Managing complexity at scale in 2026

As funds expand across more jurisdictions, the ability to navigate regulatory nuances while maintaining consistent governance is becoming a clear competitive advantage. Managers are already responding, designing cross-border platforms to be multi-jurisdictional from inception, and increasing operational interdependencies.

Ultimately, the managers who succeed will be those who:

• Run more integrated operating models across jurisdictions
• Use technology to support control and oversight, not just efficiency
• Have strategic partners to navigate the evolving regulations and mitigate risks

As scrutiny of opacity in private markets increases, 2026 will undoubtedly mark a shift toward clearer oversight across global fund structures. The measurable gains and the potential losses are simply too big to ignore.

The team at Mourant are experienced in navigating regulatory complexity, providing managers with a solution that combines legal, administration and accounting services reduces their burden and provide organizational value.