Regulatory fines already exceed $2.6bn
Fines from US regulators for unmonitored communications and recordkeeping failures now total more than $2.6bn, with no signs of slowing. In fact the regulatory net has been cast even wider to include not only banks, but also brokers, investment advisers and credit rating agencies. The list of regulators taking enforcement action is growing too.
Despite the severe financial, reputational and operational consequences that regulatory penalties bring, the financial services industry continues to be plagued by recordkeeping and supervision breaches.
Digital communications governance is a paramount concern for leaders
In the latest independently conducted research for Theta Lake, more than 600 senior IT and compliance leaders from financial services firms shared exclusive insights into the challenges they face. The findings of Theta Lake’s fifth Digital Communications Governance, Compliance and Security Report for 2023/24 reveal the compliance pain firms are dealing with as a result of their existing tools’ incompatibility with unified communications and collaboration (UCC). It puts a spotlight on the need for an urgent, updated approach to compliance and security.
In an era defined by rapid advancements in the usage of UCC tools, the importance of digital communications governance cannot be overstated. Indeed, Gartner’s newly coined market category, Digital Communications Governance (DCG), acknowledges the need for an updated approach to compliance and security for the UCC tools that make up the fabric of the workplace.
Unapproved and unmonitored communications are escalating – creating more risk
Of particular concern is the three quarters (74%) of respondents reporting that it is likely that their employees are using unmonitored communications channels, up from 66% in 2022.
Ensuring compatible UCC and DCG tools are combined for effective capture and recordkeeping will be central to addressing this worsening issue. That includes using new DCG tools for UCC that can integrate and fill gaps for existing archives without disruption, while ensuring staff have appropriate functionality to drive engagement in monitored UCC tools, rather than being driven to use unmonitored channels.