Survey Finds Most Compliance Pros Don’t Fully Understand New Regs

Less than half of compliance department professionals fully understand the requirements of new trading regulations, according to a recent IPC-conducted survey examining compliance in trading. Survey respondents consisted of senior compliance executives (52%) and compliance analysts (35%) and a wide range of financial firms, including investment banks, asset management firms, hedge funds and exchanges.

Based on their responses:

  • 55% did not think their own department understood new regulations such as Dodd-Frank Act and the Markets in Financial Instruments Directive (MiFID)
  • 43% did not feel their company was completely prepared to meet the requirements of new regulations
  • 47% of compliance departments say they have created new policies to improve or increase compliance
  • Only 6% rate the introduction of new policies as critical to improving or increasing compliance
  • 23% say new technology – such as specialized software – is critical to improving compliance
  • Only 12% said their organizations had invested in new software
  • 30% say new technologies are creating compliance issues
  • Tablet devices (35%) and smart phones (24%) and traders using non-company  equipment are believed to pose the biggest compliance challenges.

The IPC survey findings are backed by research from law firm Davis Polk & Wardwell.

“These results are worrying. It is clear that IT professionals have to work harder to explain how technological solutions can help ‘force’ compliance,” says Bart Bartolozzi, senior product marketing manager, IPC. “Much like the findings of our surveys of IT professionals and traders released earlier this year, these results speak to a need for much greater collaboration and teamwork between the constituent teams who together make the trading functions of global financial institutions work.”



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