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Market Surveillance

Compliance Trends: Then & Now – How Will COVID-19 Impact the Compliance Function?

Each year, @Nasdaq conducts its Global Compliance Survey to gain insight into the latest trends, challenges and developments impacting compliance personnel around the world. This year's survey will examine COVID-19's impact on the compliance function.

Each year, Nasdaq conducts our Global Compliance Survey to gain insight into the latest trends, challenges and developments impacting compliance personnel around the world. In its sixth year, the data and analysis gathered provides a comprehensive profile of year-over-year trends dating back to 2015.

Looking back at the data collected from last year’s survey provides insight into what compliance officers perceived as the most pressing topics given the time. Of course, the world looks much different now as a result of the COVID-19 pandemic and the drastic shift toward working from home for most people. What were the top trends from last year and what can we expect will change as a result of the new work-from-home environment?

  1. Over 60% of firms surveyed consider reputation protection to be compliance’s core responsibility, with regulatory enforcement concerns replacing worries over adjusting to mandates – for example, MiFID II concerns declined dramatically in 2019.
  2. “Complete preparedness” levels in regards to compliance sit at 13%, the lowest since 2015, despite several years of heavy compliance resource investment and increasing budgets.
  3. Despite evidence of budget tightening and concerns over financial resource availability, 50% of respondents noted that in 2020, compliance budget increases will continue for many firms.
  4. Staffing saw a trend reversal in 2019 – companies reported greater interest in hiring more junior staff with fewer years of experience and relying on external resources for regulatory expertise.
  5. The reduction of false positives was the most frequently requested improvement for 2020, with substantial increases in AI investments planned as one potential solution expected to help combat the plague of false positives.

Nasdaq’s 2020 Global Compliance Survey will undoubtedly uncover some shifts as a result of the COVID-19 pandemic.

If you are a member of the compliance community, Nasdaq is interested in your input on this year's survey. Eligible survey participants, who currently work in a compliance role at their firm, are qualified to receive a $15 Amazon gift card or have Nasdaq donate to one of the charities listed in the survey.

Take the Nasdaq 2020 Global Compliance survey here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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