New Survey Shows Compliance Investments Still Aren’t Up to Par for Broker Dealers

Kaufman Rossin | Kaufman Rossin featured in Corporate Compliance Insights | December 10, 2015

While FINRA and the SEC continue to scrutinize broker dealers for compliance problems, these issues are still not being taken as seriously as needed according to a new survey from Miami accounting firm Kaufman Rossin.

Looking at one of the country’s hottest finance markets, the survey focused on South Florida and what broker dealers are doing to deal with compliance issues,  executive training, technology and operations investments.

Key findings include:

  • While 85 percent agree compliance is important, only half meet with their Boards or compliance committee at least monthly
  • Nearly 80 percent of broker dealers have fewer than five people in the compliance departments
  • KYC/CDD/EDD documentation, customer risk rating process and transaction review are the three largest investment areas where broker dealers will be spending time in the next 12 months
  • The three most important issues they are focusing on in the next 12 months: increased regulatory scrutiny, customer risk rating and obtaining necessary CDD/EDD information
  • Money laundering, the top reason cited for filing Suspicious Activity Reports in 2014, dropped from 60 percent in 2014 to 29 percent in 2015

Read the full report here.