A multitude of regulatory reforms stemmed from the G20 meeting in 2009. While they share the same general principles, each reform has its own specific requirements. Despite the variations, Accenture recommends that investment banks focus on the fundamentals and adopt a coordinated approach to regulatory compliance.
Challenges to a coordinated approach
Juggling the requirements of each jurisdiction’s regulations is not an easy task. Compliance, once viewed as an unglamorous necessity of investment banking, has moved to center stage.
Firms are spending much more on compliance, as revealed by Accenture’s 2012 global compliance survey. Strikingly, 92 percent of organizations spent 3 to 5 percent of corporate revenues on compliance, and 40 percent of firms expect to increase their compliance spend by more than 10 percent over the next two years.
A coordinated approach allows banks to re-examine their business models and integrate compliance updates with strategic changes. For instance, such an approach might include a change program to drive customer centricity that also addresses the regulatory requirements that surround customer data.
Join me next week as I discuss steps that banks can take to adopt an organized response to regulatory compliance.
To learn more:
- Download Serving Many Masters: Dealing with Multiple Regulators in Multiple Jurisdictions (pdf; opens in a new window).