Secure compliance for financial assets and securities records

Business challenges

Financial assets and securities require documentation for reporting, retention, and compliance. These documents also contain sensitive information that must be protected from cybercriminal activity. It can be challenging for organizations to navigate the multiple forms, timelines, and volume of documents efficiently and effectively, yet it is required for regulatory compliance. The industry is governed by agencies such as the European Securities and Markets Authorities (ESMA) in Europe and the Securities and Exchange Commission (SEC) in the U.S.

Corporations must understand legal and compliance requirements and handle those complexities across volumes of documents and different financial assets. Often, assets span areas such as credit, loan instruments, debt instruments, credit securities, and other financial assets. While managing and storing documentation for a range of financial assets and securities might be overwhelming, the risks of not doing so are much more overwhelming—and can be extremely costly.

Impact

The average cost of non-compliance with the ESMA is $14.82 million, more than 45% higher than 10 years ago. In addition, a single non-compliance event can result in $4 million in lost revenue.

The SEC governs recordkeeping violations, public company misstatements, and cybersecurity disclosures. In 2023, the SEC obtained $4.95 billion in financial remedies by enforcing compliance. In recordkeeping, some fines reached as high as $125 million. Recently, $88 million in fines were imposed on 12 financial and investment companies for failing to retain employees’ electronic communications. A new SEC cybersecurity disclosure rule could fine corporations $25 million and suspend trading privileges. Beyond fines, the SEC can initiate legal actions for non-compliance, spiraling into reputation damage, lost revenue, and operational costs, making non-compliance costs colossal. As a result, improving financial asset and securities document processes and compliance is vital.

What if you could

Digitize and automate information and processes for financial assets and securities to increase responsiveness, reduce risks, and quickly access what’s needed when it’s needed. With minimal manual processing time and effort, you can streamline information management, handling, and storage, fully digitize financial-related documents at scale, and create an efficient information management system.

You can overcome financial information management challenges by digitizing records into data you can access, automate, and cost-effectively process to:

• Achieve compliant record-keeping practices
• Establish a secure chain of custody
• Reduce delays by streamlining processes
• Decrease costs and handling associated with documentation
• Automate data extraction and ingestion processes for improved accuracy
• Build workflows to bolster process efficiency
• Obtain intelligent search tools to find data and relevant documents quickly
• Automatically apply document retention rules