DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
EXECUTIVE SUMMARY 2
Introduction 2
Current regulatory environment in banking (Market Focus) 2
Strategies for going forward in a highly regulated banking environment (Strategy Focus) 2
Aligning technology for regulatory compliance purposes in banking (Technology Focus) 3
Regulatory Compliance IT spend (Databook) 3
Summary 6
The compliance burden will continue to intensify with a second wave of regulations 6
Summary of key regulations 7
SOX, Basel II and the Patriot Act are regarded as key regulations at present 9
Sarbanes-Oxley 10
Basel II 10
Patriot Act 11
Business continuity planning is key requirement 11
Future regulation will impact pricing and commission spreads 12
Efficient data management can help maximize synergies at infrastructure level for dealing with compliance 12
STRATEGIES FOR GOING FORWARD IN A HIGHLY REGULATED BANKING ENVIRONMENT (STRATEGY FOCUS) 14
Summary 14
Regulatory compliance should be an enterprise endeavor 14
Investors are driving holistic compliance trend 14
Centralized services are necessary and should be pushed down from senior management 15
Firms should set up a deliverable that satisfies multiple compliance needs 15
Data standardization can help FSIs comply with more than one regulation 15
Assessing an organization's compliance needs must be conducted in-house 16
Regulations are not specific about which technologies can achieve regulatory compliance 16
A key benefit of enterprise-wide / holistic compliance is consistency 17
SOX and the USA Patriot Act are driving the adoption of data management protocols 17
Growing regulatory compliance initiatives are expanding the roles of compliance and risk personnel 18
Data management policies and procedures need to be pushed from upper management 19
Compliance will drive the need to implement ILM strategies 19
A coordination of relevant ILM tools and solutions is required 19
FSIs should strive towards holistic regulatory compliance initiatives 20
Offering an ILM solution 21
ALIGNING TECHNOLOGY FOR REGULATORY COMPLIANCE PURPOSES IN BANKING (TECHNOLOGY FOCUS) 22
Summary 22
Technology is the enabler and not the solution to achieving regulatory compliance 22
The financial services industry is currently facing regulatory compliance fatigue 22
FSIs need to effectively manage structured and unstructured data 23
Retrieving data that is spread across an enterprise is key 23
Firms should adapt to evolving storage needs 24
Efficient security is imperative to business efficiency 24
Data management can be considered a risk in its own right 24
Controlling and managing increased data volume is another key factor 24
Data management is a key factor in compliance IT 25
ILM offers a strong method of managing regulatory compliance issues 26
Why email management is so important 27
Email management and information lifecycle management go hand in hand 28
FSIs need to establish policies for email and information lifecycle management 28
Securing data and information is critical 29
Managing emails effectively can improve productivity 29
Regulatory compliance space offers good opportunity for data management vendors 30
REGULATORY COMPLIANCE IT SPEND (DATABOOK) 32
Introduction 32
Definitions 32
Compliance IT spend by region 33
Compliance IT spend by country 35
Basel II IT spend by type of risk 37
Compliance IT spend by Regulation NMS vs MiFID 39
APPENDIX 40
Further reading 40
Ask the analyst 40
List of Tables
Table 1: Summaries of key laws and regulations 8
Table 2: Regulations and respective definitions 32
Table 3: Regulatory compliance IT spend (Europe) 2005-2009 33
Table 4: Regulatory compliance IT spend (North America) 2005 - 2009 34
Table 5: Regulatory compliance IT spend by European country, 2005 - 2009 35
Table 6: Regulatory compliance IT spend by North American country, 2005 - 2009 36
Table 7: European Basel II IT Spend 2005-2009, by type of risk 37
Table 8: North American Basel II IT Spend 2005-2009, by type of risk 38
Table 9: Regulation NMS vs MiFID IT Spend, 2005-2009 39
List of Figures
Figure 1: Emerging regulations in financial services industry 7
Figure 2: Regulations that drove key mandatory spending in 2005 9
Figure 3: Basel II overview 11
Figure 4: Regulations that are driving the adoption of data management policies and procedures 18
Figure 5: Regulatory IT spend is more focused on the Patriot Act, Basel II and SOX in 2006 23
Figure 6: Simplified ILM system design 26
Figure 7: Regulatory compliance IT spend (Europe) 2005 - 2009 33
Figure 8: Regulatory compliance IT spend (North America) 2005 - 2009 34
Figure 9: Regulatory compliance IT spend by European country 2005-2009 35
Figure 10: Regulatory compliance IT spend by North American country, 2005 - 2009 36
Figure 11: European Basel II IT Spend 2005-2009, by type of risk 37
Figure 12: North American Basel II IT Spend, 2005-2009 by type of risk 38
Figure 13: Regulation NMS vs MiFID IT Spend, 2005-2009 39
