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Survey finds money managers not meeting compliance best practices

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Todd Cipperman

Money managers and other financial service firms are not putting their money where their mouths are when it comes to compliance, with only 6% meeting or exceeding industry best practices for compliance spending, said a survey by Cipperman Compliance Services.

Also, 58% of money managers and 83% of brokers-dealers said they need more resources toward compliance. And 74% of respondents tasked with compliance duties believe they need more resources.

Money managers that aren't part of banks might not feel the need to spend more on compliance because regulators are more focused on the banking industry, said Pam Martin, managing director and head of the U.S. regulatory center of excellence at KPMG LLP, Washington. “Generally in the asset management world, there's been less of a heavy hand from regulators than banking has,” Ms. Martin said.

“Until compliance is treated like every other business function, you don't have a culture of compliance, you have a "we have a guy or girl doing that' management,” said Todd Cipperman, CEO of Cipperman.

Of the survey's 111 respondents, about 50% were money managers, 14% were alternatives managers, 22% were broker-dealers and the rest were wealth managers or other financial services firms.

This article originally appeared in the September 1, 2014 print issue as, "Survey finds money managers not meeting compliance best practices".