There have been several changes to industry regulations that can help better position firms in a post-COVID-19 environment. Recently, we asked a panel of SS&C experts to discuss these changes facing the financial industry. While firms have universally shifted to a remote, work-from-home model, our experts outline potential regulatory impacts.
Rich Clark, Managing Director of Regulatory Reporting, provided his observations on:
- The stress factors on the manager’s operational and strategic activities.
- Likely in-house or vendor infrastructure challenges including internal staff capacity limitations.
- The downstream impact from any NAV cut delays.
- Key-person risk.
Rich shared that the operational challenges of the pandemic would take time away from areas like regulatory reporting. While some managers are using off-the-shelf software to keep up with reporting, others prefer outsourcing to a service provider. As a leader in regulatory reporting, we offer a range of solutions and experienced regulatory reporting professionals to help meet all deadlines, with or without relief being provided by regulators.
Director of Blue Sky Administration, Kevin Caravella weighed in on how Blue Sky laws are impacted, how to stay compliant during this crisis, and Blue Sky challenges including:
- Potential in-house or vendor infrastructure or capacity limitations.
- State and Federal Regulator availability.
- Relief orders changing deadlines and methods of filing.
The SEC has made it clear they are maintaining the continuity of Commission operations. To date, they have not granted any relief for filing of Form D. Our Blue Sky Administration services can help you stay compliant, as we continue to monitor the requirements across all 50 states closely and will publish updates on our resource center if any new information is available, even in the face of these challenging times.
Having continuity in a regulatory compliance program is vital during this time, as financial services firms find a balance to adhere to regulations as they have shifted to a work-from-home model. Martin Orbach, Head of Product, Risk & Compliance Intelligence (RCI), discussed the challenges facing employees who might lack:
- Access to transaction and account surveillance systems that are behind a firewall or only available in an operations center.
- Ability to provide evidence of supervision when working remotely.
- IT resources to assist in leveraging key investor, KYC and trade information.
- Ability to quickly create and file reports and measuring the effectiveness of a regulatory compliance surveillance system.
With SS&C’s web-based compliance and surveillance platform, RCI, compliance as well as operational staff will have access to daily compliance alerts, transactions, orders and account positions.
The next panelist, Nadia Maharaj, Associate Director of Regulatory Solutions, spoke about:
- FATCA & CRS deadline extensions relating to tax compliance.
- New reporting requirements and reporting challenges.
- How compliance software can be such a critical tool for continuing your work in the current environment of volatility and uncertainty.
Our AEOI “Pure Reporting” tool will bridge your Key Person Risk gap that many are experiencing in light of the COVID-19 pandemic and the increasingly demanding regulatory landscape.
John Marr, Director, e-Investor, spoke about how social distancing has presented a challenge in the fundraising space, including:
- Lack of resources putting a strain on traditional paper-based processes.
- Higher transaction volume as investors want to increase/decrease positions.
- Limited resources and increased workload leading to potential disruptions.
Digital tools can help bridge the face-to-face interaction gap until social distancing measures can be lifted safely. With our e-Investor product, we are digitizing transaction documents to transition to a fully electronic process, eliminating the need for paper processing.
We realize as a result of COVID-19 there are many changes to how firms will operate from a regulatory and investor services perspective. View our "Regulatory Challenges and Relief Amidst Market Volatility caused by COVID-19" webinar to learn more about the regulatory challenges amidst market volatility and how SS&C can help you navigate these times of uncertainty.
Alternative Investments, Asset Management, Fund Administration, Regulation, Research, Analytics, and Consulting