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  • A few heads rolled. Some reputations were tarnished. And even with their commitment to adopt the Sedgwick review’s recommendations (for a self-regulatory regime)* the big four banks still leaves a fair amount of wriggle room. So all in all, not quite the outcomes that some were hoping for. However, once the dust from the commission’s hearings has settled, what is for certain is that it will never be business as it was before for compliance departments.

    Goodbye soft regulation
    One of the more tangible and welcomed outcomes of the commission’s investigations will be an increased emphasis on regulatory matters—no institution is off that hook. Banks, wealth managers and advisers of every shape and size must get up to speed in terms of their risk, compliance and governance functions. Excuses based on lack of resources and/or ignorance of the rules will carry no credence. The point is, what options do the institutions have to sort out their compliance problem? Hire more people or think outside the box?

    Why beefing up compliance does not always mean building bigger teams
    According to the SEEK** Group, in the year 2018, there was a 48% rise in recruitment ads for Compliance and Risk positions within the banking and finance sectors. But you don’t necessarily have to add to the payroll to set up a more robust compliance regime. Not if you think software—rather than manpower.

    Proving compliance, gaining commercial advantage
    Employing new compliance-focussed technologies streamlines processes and eliminates the prospect of an ever-increasing regulatory headcount. And it’s with that objective in mind that MyFiduciary has partnered with UK Fintech firm, JHC Systems. Aaron Drew, Director, MyFiduciary, commented that “Because firms face increasing compliance burdens, there is a pressing need for a robust, flexible and automated portfolio analytics solution that can cover a broad range of assets types and integrate a variety of data sources. Our partnership with JHC gives wealth advisers, dealer groups, and investment platforms across Australia and New Zealand direct access to all their digital risk, monitoring and analytics tools including their JHC Neon (‘Neon’) dashboard.”

    Plug and play, data-agnostic, zero-integration-cost software
    By analysing (on a daily basis) a firm’s entire book, Neon automatically finds and flags anomalies including existing and potential compliance issues. So fast, consistent and thorough is Neon, that firms can expect to contain—or even reduce—their compliance, portfolio administration, fund management and custody costs. And as the risk of ‘things slipping through the cracks’ is dramatically reduced, Neon users can be certain of meeting their compliance obligations. The combination of MyFiduciary’s consultancy service with JHC’s tools, provides financial institutions with what they need to clear the ever-increasing regulatory bar and meet their end-client expectations.

    Ed Lopez, JHC’s Chief Revenue Officer, states that…. “As a result of the commission’s work, product providers are focussing fairly and squarely on their customers’ needs. By adopting transparent fee and cost structures, complying with the highest fiduciary standards—and using Neon’s technology—institutions can categorically prove that they put their clients’ interests first and in the process, further distance themselves from the malpractices of the past.”