Streamlining your compliance with the Volcker Rule
The Volcker Rule, introduced as part of the Dodd-Frank Act, aims to prevent banks from engaging in speculative investments that do not directly benefit their customers.
Why does it matter? Focused on the banking book, the Rule allows banks to make use of certain instruments – derivatives or trading securities, for example – for activities such as liquidity management or underwriting. However, using the same instruments for other activities is prohibited, creating ample scope for non-compliance in a fast-moving trading environment, as well as a significant management challenge for an institution.
Using automation to deliver efficient and effective Volcker Rule compliance
Complex financial instruments create significant value for financial institutions, and the wider economy. The Volcker Rule seeks to protect this value, while enhancing the overall risk management processes in the banks that make use of them.
The challenge for banks under the Rule is ensuring and demonstrating that the right instruments are used in the right way at the right time. This represents a policy management, education, and compliance challenge for even the best-organized institution to ensure legitimate use of an instrument is justified in a transaction. Failure to observe this restriction exposes a bank to regulatory, reputational, and commercial risk.
Automated policy and compliance management offers an institution a way of ensuring its policy is efficiently defined, promoted, and adhered to whenever new starters join, new products are launched, and an organization is restructured. These are the typical pinch points that can expose an institution to the greatest potential risks – and the greatest likely compliance costs and issues.
Mitratech offers powerful solutions for Volcker Rule compliance, allowing you to address your needs comprehensively and efficiently These offer proven, flexible capabilities that help you enhance your compliance, and balance the needs of your business and your regulator.
A policy management solution like Mitratech’s PolicyHub saves time and improves efficiency, and help delivers effective Volcker Rule policy management by improving operational efficiency and removing the complexities of policy & procedure management, so you can build an ethical and defensible compliance program.
Compliance & Obligations Management
A compliance and obligations management solution, like Mitratech’s CMO offering, uses a simple, intuitive interface to let employees and auditors be proactive in incident and audit management, including Volcker Rule obligations, controls, investigations, and non-conformance reporting. Easily report incidents, understand your obligations, and continuously improve your compliance performance.
Enterprise Content Management
An ECM solution provides complete control over the capture, indexing, archival, retrieval, accessibility, delivery and retention of every item of business-critical information in an organization, via a secure central repository. For financial services firms, this is especially vital.