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Regulatory compliance for registered investment advisors - Is your IT group prepared for Dodd-Frank - EY - United States

Regulatory compliance for registered investment advisors

Is your IT group prepared for
Dodd-Frank?

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The real key to success is making IT a full partner from the beginning.

With new Dodd-Frank rules looming, registered investment advisors must act quickly — but diligently — to make certain that their information technology can support new compliance requirements.

Investment advisors will require sophisticated IT systems

As registered investment advisors (RIAs) tailor their operations to meet the requirements of the Dodd-Frank legislation some are finding that that their information technology group (IT) is not ready to support new compliance processes and requirements.

Dodd-Frank, passed in July 2010, will require an expanded class of companies to register. After registering, these new RIAs, like existing RIAs, will be required to implement written compliance policies and procedures, perform annual compliance assessments and will be subject to SEC examination, among other changes.

To be successful, the compliance strategies that RIAs implement must be supported by robust processes and technologies.

But because some companies fail to bring IT into the compliance planning process from the beginning, they find themselves stuck with processes that IT cannot support or that are not sustainable. And others have not performed adequate assessments of their IT capabilities to identify and remediate shortcomings.

RIAs: How well are you partnering with IT?

The real key to success, however, is making IT a full partner — from the beginning — in crafting a compliance strategy. With adequate time and a full understanding of the technological needs of each stakeholder, IT can be a change enabler and catalyst.

However, if planners treat technology considerations as an afterthought — as many do — compliance initiatives will inevitably face challenges that could you unable to stand up to the rigors of an SEC examination and expanded reporting.



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