. 80% of FSIs are increasing compliance training in 2006
. 60% view money laundering as a significant training issue
. 53% of FSIs claim full compliance readiness for MiFID
A survey commissioned by Intuition, the leading provider of technology-enabled learning for financial enterprises, and conducted by Datamonitor, has shown that 80% of the UKâs major financial services institutions (FSIs) intend to increase investment in compliance-focused training this year, as a response to both the growth in compliance technology deployments and persistent concerns over issues such as money laundering. Datamonitor surveyed senior executives responsible for compliance at 15 of the UKâs top 20 FSIs.
The survey clearly demonstrates a growing realisation among FSIs that the implementation of compliance policies and procedures needs to be backed up with comprehensive training across the entire organisation. This was highlighted by a growing need for better knowledge among FSI staff of money laundering practices, including how to identify potentially illegal transactions. With governments wanting to clamp down on both terrorist funding and international financial crime, FSIs are under increased pressure in this area - 60% anticipated that money laundering will be a significant compliance training issue for 2006.
However, training needs were not just restricted to professionals â with
regulations such as Basel II and Sarbanes Oxley making board level executives directly responsible for their organisationsâ state of compliance, 33% of the FSIs surveyed said that they needed to carry out more training of senior management in areas such as risk management and corporate accountability.
Another interesting finding of the survey was in terms of readiness for MiFID, which is due to come into force in November 2007. 53% of FSIs said that they were already fully prepared and compliant with MiFID, with a further 33% stating that they were nearing compliance readiness, despite the fact that some of the finer details of MiFID are still to be finalised.
The survey also revealed that 100% of the companies intended to increase spending on compliance technology, and that over 70% of respondents were planning to increase investment in compliance processes. Additionally, over 50% of the companies surveyed intended to spend more on compliance strategy.
âThe whole regulatory environment has been strengthened in the last few years,â said David Harrison, CEO of Intuition.
âAs such, good training is clearly at the very heart of compliance, and our survey clearly shows that FSIs have come to understand this and are being proactive about it.â
âHowever, it is important that training is carried out in a way that fits around learnersâ existing work commitments. It is also vital that the training is itself effective, and that it can be shown to have been received and understood. As such, e-learning is an excellent way of conducting compliance training, as it offers both the flexibility of online access and provides a demonstrable record of the courses that learners have successfully completed.â