The Tragedy of Sell-Side Compliance: Warriors Defend the Gate
Report Summary
The Tragedy of Sell-Side Compliance: Warriors Defend the Gate
Despite the importance of their role, compliance officers often lack the support, budget, and tools they need to perform their jobs efficiently.
Boston, MA, May 26, 2010 – A new report from Aite Group provides a strong indication of the situation for compliance officers and their teams. Based on detailed Aite Group interviews with compliance staff at broker/dealers large and small, completed in the first quarter of 2010, the report sheds light on the structure of compliance teams, their pain points, needs, and the technologies they find most valuable.
Broker/dealer compliance officers live in a real-time environment in which each day is different from the last. Attempts to establish a routine or process are often undone by a barrage of requests or interruptions, which may come from any functional area of the firm or any number of external constituents. Despite the demands of their jobs and the importance of their role, compliance officers and their teams frequently lack supportive resources. Most frequently, compliance officers rely on technology that was built for other functional purposes.
“Compliance officers are personally on the line for their company’s adherence to rules and regulations, and the variety of tasks and details involved are significant and unwieldy.” says Denise Valentine, senior analyst with Aite Group and author of this report. “Unfortunately, the technology that can help is still relatively expensive for the vast majority of firms, particularly where compliance is viewed as a cost center. If the current market crisis and aftermath are not enough to turn the tide for more compliance resources, what else will it take?”
Questions posed to survey participants examined staffing, organization, process, time and activities, technology usage, and sentiment toward work and technology. Responses are reported under the following chapter titles:
Chapter 1: Warriors Assemble (staff/role)
Chapter 2: The Armory (technology use)
Chapter 3: Assessing the Adversary (pain points)
Chapter 4: Carrier Pigeon or Horseback? (keeping up-to-date)
Chapter 5: How to Be a Warrior (compliance process)
Chapter 6: A Warrior’s Life (where they spend their time)
Chapter 7: Conquer or Be Conquered (challenges)
Chapter 8: The Future Kingdom (looking forward)
This 32-page Impact Note contains 21 figures. Clients of Aite Group's Institutional Securities & Investments service can download the report by clicking on the icon.