Benefits of Compliance Software
Compliance departments at broker/dealers, investment advisors and diversified financial institutions are all under increasing pressure from their clients and regulators to ensure that their organizations are complying with the latest internal and external rules and regulations regarding employee conflicts of interest relating to personal trading, gifts and entertainment, outside business activities, and other issues.
Despite the risks, 90% of financial institutions rely on manual or proprietary systems for employee conflicts monitoring, according to industry analysts. Many companies still rely on paper forms, have spreadsheet-based reporting, send confirmation statements through the mail, and lack data integration capabilities. Compliance departments are working countless hours to keep up with these demands.
However, an increasing number of financial institutions are moving to adopt the latest best practices in compliance by employing software. The stakes are simply too high to be complacent, and the regulators and clients are demanding the best compliance and risk controls.
Forward-thinking financial services firms have found that compliance software specifically designed for their company type and size can increase organization, efficiency and productivity, whilst reducing regulatory and reputation risk.
High-quality compliance software is built to be sustainable and address the ever-changing regulatory landscape. The software should be able to scale easily as the number of employees and their related activities grows over time. Effective software helps manage IT and compliance personnel costs, whilst freeing compliance professionals to focus on high-value initiatives and core activities.