01 Feb 2019 Australia needs more Compliance experts, says new industry report

Monday 4 February 2019 – Sydney, Australia. Demand for Risk and Compliance experts in Australia has risen sharply over the last twelve months, and will continue to increase in the year ahead, according to findings from the latest Compliance Index, released today.

The Compliance Index, an industry study conducted by TAS, a leading technology partner for Australia’s financial services sector, found that more than 60 per cent of executives surveyed are seeking to employ as many as 5 additional resources to focus purely on Risk and Compliance management in the year ahead. When compared to the previous year’s Index, this is an increase of close to 20 per cent.

Research conducted by SEEK also found the number of job advertisements for Risk and Compliance specialists have jumped by nearly 50 per cent over the past year. Currently 13.5 per cent of all Banking and Finance roles on SEEK are in the areas of Risk and Compliance[1].

The Index further confirms that compliance is higher on the Boardroom agenda with close to three quarters of surveyed executives reporting increased visibility of compliance across the organisation. This is significantly up by almost 20 per cent when compared to 18 months ago.

Shane Baker, CEO of TAS said, “According to the report, Australian executives are taking a top-down approach to creating positive change in their organisations towards compliance. Leaders are taking the right steps to ensure greater transparency moving forward with increased commitment to specialist resources as well as the prioritisation of compliance at a Board level. This shows executive ownership at the most senior level to meeting regulatory requirements which is critical when creating a company-wide, robust and effective compliance culture.”

However, despite the progression made to-date, the Index also suggests that there are still many challenges that organisations face when it comes to compliance. The top three challenges are: resource constraints (42 per cent), time (35 per cent) and capability (23 per cent). Yet, against these findings, companies appear to be slow on the uptake of innovative partnerships to help overcome these challenges with less than a quarter of organisations activity partnering with RegTechs (23 per cent), three percent actively pursuing future partnership with RegTechs, and a third considering partnerships with RegTechs (32 per cent).

Mr Baker concludes, “It is no surprise that given what the sector has been through recently, there is nervousness around implementing relatively new and untested technology, which may be impacting organisations’ decisions to partner with RegTechs. However, as the demand for skilled experts continues to grow and vacancies remain unfilled, organisations will need to look at alternative resources to meet their regulatory and compliance requirements including innovative partnerships with third parties like RegTechs.” ~ENDS

More about the Compliance Index: TAS initiated the Compliance Index in 2017 to canvass the challenges and opportunities Australian companies are facing in the areas of compliance, regulation, technology and talent. The Index findings are drawn from responses gathered from C-level executives employed across banking, finance, insurance, superannuation and IT, with the aim of providing a timely and relevant snapshot of the latest compliance trends and strategies. A full copy of the 2018-19 report is available at http://tas.business/work/the-compliance-index/.  


About TAS (www.tas.business): Founded in 1989, TAS is an Australian-owned and operated provider of technology services to the Australian financial services market. With extensive experience servicing one of the most highly regulated industries – Banking and Finance – TAS delivers the highest levels of availability, compliance and quality of service to over 60 clients.

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21 Dec 2018 ASIC boosts support for regtech

ASIC is ramping its support for regulatory technology businesses or ‘regtechs’ in response to an overwhelming number of organisations expressing frustration over complex compliance burdens.

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21 Dec 2018 TAS study shows compliance costs increasing

Financial services technology provider TAS yesterday launched its inaugural Compliance Index, which revealed the majority of organisations were increasing their spending on compliance, with many calling for regulations to be loosened.

The results, which were shared at an industry roundtable in Sydney, showed 76 per cent of financial services companies were increasing spending on compliance year-on-year, with over half adopting cloud-based measures.

Survey participants also expressed their desire for a reduction in regulatory policies and greater collaboration with regulatory technology firms (regtechs).

Moderated by Australian Accounting Standards Board chief executive Kris Peach, themes touched on during the roundtable centred on the need for a change in attitude, identifying where the risks were and the role compliance played in relation to monitoring those risks.

TAS chief executive Shane Baker said in a world of more onerous compliance requirements, companies were looking for innovative ways to future-proof in the digital age.

“In response to these disruptive market forces, financial services are turning their attention to building cyber-resilience, however, many companies continue to be held back by challenges such as lack of resources and funding, time constraints and talent shortages,” Baker noted.

He said the nature of compliance was changing, with modifications and efficiencies needing to fit in with a variety of organisational departments, such as human resources and finance.

Efficient implementation of new compliance procedures was another issue to be addressed, he said.

He identified the current situation as an opportunity for the industry to gain new insights into risk and compliance issues, promote further collaboration between industry bodies and determine what was on the horizon.

Variations made to technology today needed to be flexible to accommodate future changes, he added.

Grant Thornton head of financial services Madeleine Mattera said standards rose yearly for risk and compliance, and industry cooperation with new players was imperative.

“As technology costs fall and capability increases, there is a unique opportunity to help established institutions innovate by partnering with fintechs and regtechs. Data and technology will be increasingly used to supervise regulated institutions and will shed light on regulation complexities,” Mattera said.

Survey participant Complii Fintech Solutions managing director Alison Sarich said marrying technology with company resources could have a strong impact.
“The sheer size and scale of changing market obligations have made it difficult for organisations to keep up. At a time of growing volatility and speed, the improved use of available technology can ensure internal capabilities, services and offerings remain highly efficient.”

TAS initiated the Compliance Index in response to the shifting regulatory environment in Australia and the challenges facing financial organisations.

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21 Dec 2018 Cyber security poses ‘main challenge’ to insurers

The insurance sector sees cyber security as the main challenge in the next year, according to a review of financial services compliance concerns by technology provider TAS.

Companies face increased regulatory pressures, while boards have stepped up their involvement and are helping lift the internal focus on compliance issues across their companies.

“Certainly, we hear there is a significant shift driving cultural change within organisations around compliance,” TAS CEO Shane Baker told insuranceNEWS.com.au.

TAS last week released its second Compliance Index report, and it hosted a roundtable discussion of the issues in Melbourne on Thursday.

Mr Baker says digital disruption and pressure to develop and roll out new products on new platforms increases the importance of embedding a strong risk and compliance culture.

“Digital disruption is here and it is real, and it is going to have a significant affect… on the insurance sector, as it has had on the banking sector,” he said.

The TAS research finds limitations in resources and experience are the main constraints to compliance management for the insurance sector, with respondents saying companies are aware of requirements but do not necessarily have good mitigation plans.

Focus is also increasing on internal education, with financial services groups aiming to better customise training according to existing knowledge and individual roles.

Insurance companies are also turning to increased automation to reduce the burden of compliance.

Across the financial services sector, 46% of index respondents indicated cyber security is their company’s leading compliance concern.

More than one-third of leaders are investing in Big Data and analytics to help safeguard sensitive information and gain improved risk insights.

“Both in Australia and overseas, we have seen a dramatic rise in cyber-security attacks, so companies are heavily focused on building cyber resilience and enhancing risk awareness to mitigate financial and reputational risk,” Mr Baker said.

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21 Dec 2018 Cyber-security fears strike industry: Research

Cyber-security has emerged as a major concern for finance, insurance and superannuation firms in the last six months, latest research from technology provider TAS suggests.

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