An overstressed data-gathering process can generate information silos, and the process of proving data-backed valuations can be laborious. Greater data transparency is needed to ultimately facilitate, rather than impede, compliance efforts.
While investment firms seem to be doing well handling compliance during the pandemic, some wonder if strong financial markets are actually covering up shortfalls. According to a survey by Smarsh of compliance pros in financial industries, 83 percent said their firms allow conferencing tools, yet only 22 percent have established retention and oversight programs for the content that these platforms can hold.
Firms already struggle to gather timely, updated data to manage portfolios and make decisions; the same holds true for compliance. With remote work adding challenges to retention and oversight, and compliance often challenged to stay in the loop, an already dangerous gap will continue to widen as new communication tools proliferate.
It’s a scenario that’s causing some restless nights for chief compliance officers.
Just a Dream?
CCOs want consistency, control and efficiency. However, these dreams can quickly take a dark turn when it comes to offices that allocate to external investment managers. Updates arrive in various formats and at…
