SURVEY RESULTS: ISITC North America Poll Highlights Financial Industry Challenges Posed by Regulatory Change

Keeping track of deadlines, cost of operational updates, adapting technology and preparing for regulations are all named as extremely challenging in the most recent ISITC member survey SIBOS, Dubai ? September 16, 2013 ? ISITC (The International Securities Association for Institutional Trade Communication), the industry trade group focused on standards in transaction processing and related communications, today announced poll results addressing the most pressing challenges that regulatory change present to the financial industry. Findings reveal mixed feelings regarding the benefits that increased regulatory oversight will yield. The 2013 survey polled ISITC member firms including leading broker/dealers, investment managers, custodians and associate constituencies across North America. Various firms spotlight keeping track of deadlines, the cost of operational updates, adapting technology and preparing for regulation as extremely challenging for the financial industry. Detailed survey results show that:

  • 96% of respondents believe that adapting technology to keep up with new regulations is somewhat-to-extremely challenging. 44% agree that the cost of operational updates is an extreme challenge in its own.
  • 96% confide that just understanding the specific impact of pending regulations on their business alone is a somewhat-to-extreme challenge.
  • The financial services industry is curious ? 78% of ISITC members acknowledge that clients have inquired about how their firms are dealing with current or proposed regulatory change.
  • Complying with new regulation is seen as extremely critical by 64%; 57% say the same for reducing operational risk.
  • Mixed feelings exist regarding the tangible business benefits that increased regulatory oversight will deliver. 42% anticipate no business benefits, 33% are unsure and only 25% expect some.
  • 36% reveal that they rely on participation in industry associations to best monitor and evaluate the impact of proposed regulatory changes on operations within their firm.

?Each year ISITC formally checks in with its North American members to understand the most significant challenges facing financial firms. The exercise provides a strong overview of the issues impacting the financial industry today. As the industry?s complexity evolves, the value of forums such as ISITC is clear. Participation creates union and understanding,? states Jan E. Snitzer, Chair of ISITC. ?Challenges in the market are sure to persist, if not increase. ISITC offers its members the opportunity to engage in an ongoing discourse on pressing issues, including those addressed in this year?s poll, and to take part in shaping our industry?s future. Through collaboration, ISITC members strive to reduce inefficiencies and lower risk while developing and promoting standards and market practices for the global securities industry overall.?