MyComplianceOffice Blog

According to the U.S. Securities and Exchange Commission’s 2021 Examination Priorities, in the  last five years the number of Registered Investment Advisers the SEC Division of Examinations oversees increased from about 12,000 to more than 13,900, and the assets under management of RIAs increased from approximately $67 trillion to $97 trillion.

Because of the totality of assets managed, RIAs are always going to be a priority for the SEC. Examinations are not going anywhere. The Division has made significant process, staffing and technology updates to keep up with the growth and increase RIA coverage. In 2020, a year where COVID forced a mid-year switch to remote examinations, Division coverage of RIAs was 15%.

2020 and 2021 have been eventful years, dominated by the COVID-19 pandemic and political and regulatory changes across the globe. In their Cost of Compliance 2021 survey Thomson Reuters researchers asked over 720 global financial services professionals their thoughts on the state of compliance in today’s world. The results highlight the challenges and changes that compliance practitioners in the financial services industry expect to face in the year ahead.

What happens when a software upgrade involves not just a few changes to your existing compliance solution but a move to an entirely new platform? If your compliance vendor is forcing a transition to a brand new system you can expect time and money lost in revamping internal processes and getting up to speed on the technology, along with the increased risk that implementing an untested platform will bring.

Don’t feel pressured to commit to the conversion without significant thought and assessment.  With large scale disruption already on the horizon, it’s an opportune time to take a look at other options in the market to see if there’s another solution that better meets your needs.

In 2021, Compliance expects to face a reduction of staff and budget dedicated to its department, contrasting with the current need for better monitoring of employees’ activities and the raising of regulatory enforcement. This year was a time to re-evaluate compliance programs and review processes. Many Compliance departments spent weeks doing so, coming to the conclusion that a more efficient technology is the only way to reduce the cost of its activities, improve the monitoring of employees and transform inadequate Compliance programs.

Why companies are investing in compliance automation in the first place? The automation conversation is being highlighted like never before thanks to the growing interest in the efficiency of compliance activities and the understanding that without technology firms are relying on weak compliance monitoring.