Boston, MA, February 24, 2006 – According to a new report by Aite Group, regulators are honing in on enforcement of initiatives where firms should have theoretically had systems in place for regulatory compliance. Four areas discussed in the report include AML, trade compliance, supervisory controls, and fraud monitoring. The issues are not new, but there are changes to existing regulations to add accountability for brokerage firms.
According to Eva Weber & Adam Honoré, co-authors of the report, "While regulators have not slowed down, their consistent activity has caused a pseudo-Pavlovian conditioning in most brokerage firms where the culture has changed to support a normalized compliance infrastructure." The analysts add, "Creating an appropriate balance between technology and human capital will prove to be a valuable albeit difficult task for many firms."
This is a 20-page Impact Note. Clients of Aite Group's Institutional Securities and Wealth Management services can download the report.