Published on Dec 7th, 2022 |


Firms Investing More in Compliance to Reduce Regulatory Headaches

Vigilant Insights

Brief Introduction

In light of recent SEC charges, including the charges against firms for failing to monitor and record electronic communications via texting and other mobile apps, firms have increased spending to remain compliant in what has become an increasingly aggressive regulatory environment.

In a recent report, 77% of responding firms reported an over 25% increase in compliance expenditure over the past five years. Additionally, senior management surveyed from 170 firms reported that regulatory change was the most difficult task when trying to remain compliant.


Why Firms Are Increasing Their Investment In Compliance?

Why Are Firms Increasing Their Investment In Compliance?

  • The SEC’s current leadership is seen as more aggressive than previous leadership.
  • Additional internal compliance staffing has increased costs.
  • Compliance executives are aware of the devastating costs that compliance failures can create.
  • The regulatory environment can rapidly change, emphasizing the usefulness of experienced compliance officers with the knowledge to navigate the environment.
  • The SEC has issued billions of dollars in fines this year related to electronic communication.
  • Digital communication has increased as COVID pushed firms into remote work environments.
  • Many Firms are considering monitoring business-related communications, which requires significant training of employees to remain compliant.

Vigilant's Final Conclusion

Vigilant’s Final Conclusion

The investment in compliance in this regulatory environment is necessarily increasing significantly as the SEC continues to apply aggressive enforcement actions and increasing regulation.

Investing in compliance proactively could help alleviate the reduced risk of SEC action towards your business in the future.

An outsourced compliance team by members with deep industry experience can provide a different viewpoint and allows the opportunity to maintain your Compliance program.

At Vigilant, we provide on-going compliance solutions, and support is available for Firms trying to navigate through the complex regulatory environment.

Contact Us Today To Learn More About Vigilant’s Solutions