1. CONSULTING services
The task of complying with regulations in financial
services is getting harder. One of the major findings of
SunGard’s new research report on the impact of new
regulations in the financial services industry is that
compliance is threatening companies’ ability to grow.
At this critical stage in the recovery of the world’s
economy, growth is a central issue which needs to
be addressed.
The report also made clear how seriously compliance
is being taken by senior management. Regulatory
compliance is now keeping chief executives awake at
night. Regulatory risk – the reputational and financial
damage of non-compliance – is now a serious
boardroom issue.
Part of the problem is that the definition of regulatory
risk is starting to broaden, with regulators now
concerned about areas including operational and
technology risk. This is adding extra strain to financial
services firms. Today, firms are challenged in their
compliance function not just to meet requirements,
but actually anticipate future regulatory changes as
they evolve over time. The resources needed to address
all this are inevitably seen as reallocation of resources
a company could use to grow. Firms need to somehow
marry the dual needs of regulatory compliance and
agile growth that are necessary to compete in today’s
industry landscape.
To do this, firms need to take a combined approach
to compliance and growth. Compliance functions are
often hampered by processes and procedures designed
for the previous regulatory regime. In fact, 40 percent
of survey respondents said they were facing challenges
to move beyond this “check-the-box” approach to
compliance. It’s this static approach to compliance that
inhibits firms from responding efficiently to
changing requirements.
What’s needed is a culture change towards compliance
cross-functionality and centralization. For instance, an
inability to gain regulatory clearance might limit a firm’s
ability to grow, which could hinder its entrance into
new markets. A lack of clear insight into business and
regulatory issues can spill over into other domains – in
this instance, business development.
By enabling a properly centralized compliance program,
however, firms can gain transparency across the
enterprise, outlining data and processes in an easily
navigable way. The end product here is strategic insight
into the current state of the business, which can be used
to achieve a level of compliance not previously possible.
This has the potential to open new doors to new
opportunities previously buried in disorganized data,
identify inefficiencies that may have once flown under
the radar, and develop a future state target operating
model that can drive real revenue growth.
POINT OF VIEW
The Regulatory Pressure Cooker:
Compliance Moves into the Boardroom
Author: Jeffrey Wallis, managing partner, SunGard Consulting Services
40 percent of survey respondents said they
were facing challenges to move beyond this
“check-the-box” approach to compliance.
It’s this static approach to compliance that
inhibits firms from responding efficiently to
changing requirements.

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Achieving this level of operational efficiency in the
compliance department and across the enterprise
will be easier for some firms than others. Readiness
for such a development will of course depend on
factors including staffing, technology, organizational
structure and location. No two firms will have the
same issues to deal with in getting there, but the
underlying message is the same: compliance can
no longer be viewed simply as an audit function.
Long gone are the days when a retrospective,
“check-the-box” approach could fulfill regulatory
demands and spot-checks would suffice to reassure
the board of directors. Instead, compliance needs to
be an ongoing process that is a collaborative effort
and a constant component of the overall running of
the business.
If made a holistic part of a firm’s operations,
regulatory compliance doesn’t need to be such
a headache for chief executives. With the right
approach, regulatory compliance can transform
itself from a being a drag on business’s resources
to representing a real competitive advantage.
Today’s regulatory landscape leaves too much
room for error to do otherwise.
This blog post is part of a series focusing on
regulatory readiness in the financial services industry.
To learn more, download SunGard’s 2014 research
report: “The Regulatory Pressure Cooker: Assessing
Regulatory Stress in the Financial Services Sector.”
About SunGard Consulting Services
SunGard Consulting Services helps financial services and energy companies solve business problems
by managing their complex technology and operational needs. Focused on large scale data and process
management, custom application development and systems integration, we combine business and
technology consulting and managed services to deliver innovative custom solutions. We help our
customers capitalize on and manage the consequences of business, technology and regulatory change.
For more information, visit us at www.sungard.com/consulting.
No two firms will have the same
issues to deal with in getting there,
but the underlying message is the
same: compliance can no longer be
viewed simply as an audit function.