The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Major Study Finds Rapid Adoption of Hosted Email Compliance

Subscribe to our newsletter

Financial institutions are rapidly moving to hosted email compliance and storage services to deal with increasing costs, risks and regulations, according to a study conducted by Forrester Consulting. The study was commissioned by Bloomberg Vault, a service that helps corporations globally meet compliance, regulatory and eDiscovery requirements.

The poll of 187 executives with responsibility for compliance, messaging and legal risk mitigation indicates that financial services firms that once relied on in-house software are now moving to hosted solutions. The cost of meeting new regulatory mandates is a major issue, the study says. More than 60 percent of the respondents polled say that their shift to cloud-based solutions is driven by the promise of lower total cost of ownership (TCO), faster deployments and easier management than on-site deployments. Half of the financial services firms polled say they plan to use hosted compliance solutions by 2012.

“The market has reached a tipping point,” said Harald Collet, global business manager of Bloomberg Vault, which has secured more than 240 clients since it launched a year ago. “We expect to see a significant adoption of cloud?based message archiving by financial services enterprises of all sizes over the next two years.”

Scott Black, general counsel and chief compliance officer, Hudson Bay Capital Management, said, “We evaluated a number of solutions and concluded that a hosted service would streamline compliance and reduce costs. We chose Bloomberg Vault because we wanted an end-to-end solution that integrates real-time policy management and archiving for all our corporate communications. We are especially impressed with Bloomberg’s customised search functionality, as well as its ability to efficiently capture both Bloomberg email and corporate electronic communications.”

Richard Farber, chief compliance officer, KGS-Alpha Capital Markets, said, “Security is crucial when selecting a hosted service, and we believe that Bloomberg Vault offers us a secure hosted compliance solution. In addition, we chose to use this service on the basis of the ease of establishing this service through Bloomberg, and the availability of an integrated solution for oversight and surveillance of emails along with Bloomberg messages.”

Key findings of the survey include:

· Financial services firms struggle with eDiscovery and data privacy – 55 percent of respondents describe complying with data privacy laws as challenging. Also, decision?makers report significant difficulties in meeting litigation requirements, recording and archiving obligations, employee communications monitoring needs and other regulatory requirements.

· Compliance challenges are multi-faceted – Edging out concerns about cost, 75 percent of the financial services decision?makers surveyed highlight concerns about reputational damage in conjunction with regulatory oversight and investigations. Respondents also cite major concerns with compliance?related application integration and lengthy response times.

· Financial services firms focus on a broad set of content for compliance – In addition to email, organisations perceive file shares, physical records, line?of?business applications, mobile messaging and a wide range of other content types and applications to be critical for regulatory purposes.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Deploying knowledge graphs in the real data management world

Knowledge graphs that link data across a wide and diverse range of sources, incorporate both structured and unstructured data, visualise connected data, and provide in-depth contextual search capabilities that deliver business insight without moving data offer great potential for financial institutions. Their use cases range from advanced data integration, unification and analytics to specific functionality...

BLOG

AutoRek Urges Industry to Prepare for Jan 1 IFPR Start

Automated reconciliations provider AutoRek has warned firms to start preparing their systems for the complex calculations and processes they will need to undertake to be compliant with the UK’s incoming Investment Firms Prudential Regime (IFPR), which go live on January 1  – now less than 100 days away. IFPR is being introduced by the Financial...

EVENT

RegTech Summit London

Now in its 7th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Regulatory Data Handbook 2021/2022 – Ninth Edition

Welcome to the ninth edition of A-Team Group’s Regulatory Data Handbook, a publication dedicated to helping you gain a full understanding of regulations related to your organisation from the details of requirements to best practice implementation. This edition of the handbook includes a focus on regulations being rolled out to bring order and standardisation to...