More MCG SIFMA takeaways, Next generation compliance

More MCG takeaways from 2019 SIFMA Conference C&L, Annual Seminar held March 24-27 at JW Marriott Desert Ridge, Phoenix AZ

A new generation of Compliance Officers will now be expected to have expertise in not only the securities rules and regulations, but compliance technology as well.

For Game of Throne fans “Winter is here”.  Borrowing a line from the HBO series, next generation compliance technology is here.

SIFMA had a strong technology track throughout the seminar. Listed below are the panels on technology presented during this year’s conference:

  • Data and Analytics—Data Driven Insights for Compliance Success
  • Using Data Analytics to Enhance Compliance Programs
  • Outsourcing: Vendors, Technology and Data Storage
  • Digital Advice Platforms: Compliance & Legal Challenges
  • Managing and information Security Breach: Regulatory and Reputational Considerations
  • Virtual Currencies—Tales from the “Crypt”
  • 20th Century Rules, 21st Century Technology: Compliance in the Digital/Virtual World
  • What is Conduct Risk Data and How do you use it?
  • Cybersecurity Update: Combating an Evolving Threat

In addition to the panels, a number of major technology firms are now fully invested in the financial services domain. To name a few, present were Google Cloud, IBM, Infosys, and Refinitiv.

Accenture provided a “peek” into the future of compliance software and the data analytics functionality. It was truly fascinating to see how far we have come in a relative short period of time in the industry.

Accenture’s 2019 Compliance Risk Study highlighted a few key points related to the “New Expectations” and Compliance Technology. The survey was based on responses from 151 senior compliance executives from banking, capital markets and insurance institutions globally.

Financial Services is experiencing change at unprecedented speed. As new products are launched, we now have new associated risks that were not a consideration previously. As a compliance officer, we are now expected to be aware of risks related to cybersecurity and customer privacy. Such risk mitigation increasing relies on technology solutions to help mitigate the associated risks. Consequently, according to the survey; “84% of 2019 Compliance Risk Study respondents say they have a technology compliance office within their compliance function”. Having a compliance officer with an understanding of technology makes perfect sense in the new compliance/risk environment.

Back to Game of Throne— “Winter is Here”

A new generation of Compliance Officers will now be expected to have expertise in not only the securities rules and regulations, but compliance technology as well. In the same survey cited above; “compliance officers are able to leverage artificial intelligence and natural language processing at a scale in areas such as anti-money laundering and regulatory tracking to perform existing roles efficiently”.

So, the wall has now been breached—technology is here and it requires a new generation of compliance officers to be effective.



Paul A. Murdock, president of MCG Consulting, is a seasoned financial services professional with proven experience leading compliance engagements for broker-dealers, banks, investments advisers, hedge funds, private funds and mutual fund companies.