Compliance

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Ivy Schmerken
Ivy Schmerken
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Stressed Out by Compliance, Reputational Damage & Fines?

Financial services executives are living in a "regulatory pressure cooker." Here's how executives are preparing for the new compliance requirements.
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The deepest fear is reputational damage
Failure to comply can result in steep fines, but firms are more worried about their reputations and clients.
Failure to comply can result in steep fines, but firms are more worried about their reputations and clients.

The stakes are "terrifyingly" high, because failure to comply with regulations can bring steep fines. Nevertheless, the industry's deepest worries are not about the fines. Rather, 52% of the SunGard survey respondents said they fear reputation damage the most, and 39% said the loss of clients is their worst nightmare.

 

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
6/10/2014 | 1:34:47 PM
Re: Boo hoo
i have to agree here. Although I am not a fan of excess or useless regulations, the public is not longer willing to allow financial firms to self regulate. For years, Wall Street argued that the market would take care of itself and regulations were useless and costly.

As it turned out, self regulation didn't really work out. Now we have gone (probably) to the other extreme. Unfortunately, this is a pill (complex and costly regs) that firms are going to have to swallow for a while.
KBurger
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KBurger,
User Rank: Author
6/4/2014 | 4:18:19 PM
Re: Boo hoo
Ivy, there is no doubt that regulation has become more complex -- some of that is because of politics and turf battles, but some of that is by necessity (things that were unregulated need to be, etc.). Still, it seems kind of disingenous for so many people to be so "caught off guard" by these requirements. I'm not a risk manager or compliance officer and I could have told you the day after Lehman failed that there was going to be more bank regulation. These companies have had plenty of time to plan and budget for this reality.
IvySchmerken
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IvySchmerken,
User Rank: Author
6/4/2014 | 4:10:43 PM
Re: Boo hoo
It's true that banks brought on the regulations themselves. But many are complaining that the regulations are excessive. Someone told me the regulations are vague and it's hard to write rules for systems. There are also numerous regulatory authorities overseeing their activities. In the SunGard survey, some executives said their attention is diverted from their core business and missing opporunities to invest in new markets and products. Compliance has become a huge undertaking.
anon0270366629
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anon0270366629,
User Rank: Apprentice
6/3/2014 | 6:14:12 PM
Reduce the Stress of Compliance in Financial Industry
There are solutions to quickly automate and ensure that your policies and procedures for regulations are managed using best practices in the industry so you can increase efficiency and cover your bases with ease. ConvergePoint is one of these options that keep all of your policies, discussions around policy creation, references, and acknowledgments all in one secure SharePoint central repository for easy creation, approval, distribution, acknowledgment and auditing of your policies and procedures. Anyone interested in automating their efforts to improve their compliance should learn more about this software at http://www.convergepoint.com/policy-management-software.
KBurger
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KBurger,
User Rank: Author
6/3/2014 | 4:39:08 PM
Boo hoo
Why do I feel less than sympathetic? The industry brought this on themselves.
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Stressed Out by Compliance, Reputational Damage & Fines?
Stressed Out by Compliance, Reputational Damage & Fines?
Financial services executives are living in a "regulatory pressure cooker." Here's how executives are preparing for the new compliance requirements.