One of the main issues impacting compliance officers today is the difficulty of monitoring the personal trading activities of employees in accordance with best practice and industry regulations. Adherence to rules such as SEC Rule 17j-1 and Rule 204A-1, and adoption of the best practices recommended by the SEC can be very time consuming and distracting for any compliance department. Automation of the personal trading compliance process can save firms a lot of time as well as providing them with the ability to more easily analyze the data and check for trends in the data.
Investment advisers and registered hedge funds that are currently experiencing threats to their revenues are understandably reluctant to spend money on compliance management software. Yet the reality is that new regulations are inevitable as a response to the financial markets crisis, and compliance is going to require more resources. These coming changes will make it even more difficult to be a profitable firm, so choosing the right solution is important
Significant concern exists for investment advisery firms in addressing compliance requirements. Unfortunately, IT offerings have not, to this point, been able to provide a comprehensive solution at an affordable price-point. Although it is technologically possible to develop an IT solution providing comprehensive compliance monitoring, it often proves prohibitive because of the continually changing regulatory environment, the need for flexibility, and of course, cost considerations. A hosted solution over the Web can resolve many of these issues.
To assist investment managers in pro-actively navigating the risky and ever-changing market and regulatory environment and to provide an outline for a flexible and robust risk-based compliance management methodology.
have you heard? Regulators have begun examining how firms comply with rules that prohibit the intentional spread of rumors intended to manipulate securities prices. This is the latest example of how compliance teams are being challenged to manage a growing list of compliance activities, often with the same headcount.
Investment advisery firms face tremendous challenges in addressing compliance requirements. The costs associated with administering an effective program. The time needed for issue monitoring. The rapidly changing and increasingly complex regulatory environment. Demands from institutional prospects for proof of operational excellence. The need to demonstrate the effectiveness of programs to regulators. Addressing these issues takes time, money and expertise. Maintaining an effective program can be difficult for even the largest firms, so how do small and mid-sized firms stand a chance when faced with all of these issues?