2023 Trend: Regulators Are Investing in Technology. Are You?

Stacia Graham

Managing Director and Asset Management Lead

Stacia Graham has more than 20 years of experience in investment management, bringing a deep understanding of end-to-end asset management processing and project management to her role as Managing Director at Cutter Research. Prior to Cutter, Stacia worked at Wellington Management Company LLP in Boston in various roles within compliance and operational risk, including leading and managing the global Investment Guideline Compliance team for eight years. She earned a bachelor of science in business administration from Bryant University and an MBA from Bentley University.

Recent research assignments and publications include the following:

All-In-One or Standalone Solutions? Finding the Right Technology Strategy
Asset Allocation Solutions
Governance, Risk, and Compliance (GRC) Systems
Performance Measurement and Attribution Systems
Rethinking Research Management
Robotic Process Automation (RPA)
The Future of Work in Investment Management

Shankar Subramanian

Consulting Principal – Public Funds, Compliance and Risk Management

Shankar Subramanian has over 25 years of industry experience in investment management and technology solutions. Shankar has a deep understanding of investment data management, portfolio management, risk management, investment accounting, and alternative investments. At Cutter Associates, he heads the Risk and Compliance practice, helping client with investment risk management, and asset allocation, as well as providing support for compliance with consulting on trading forensics, communication surveillance, regulatory reporting, and guideline compliance. He advises on, and designs, operating models, selects systems, and implements business and technology solutions. He also leads development of Cutter’s alternative investments practices and the firm’s efforts to provide thought leadership and strategic and tactical advice to asset owner clients.

Prior to joining Cutter, Shankar held senior roles at IBM Global Services and PricewaterhouseCoopers (PwC), advising clients and leading global delivery teams in large engagements. Shankar holds a Bachelor of Science in engineering from the Indian Institute of Technology and an MBA in finance and information systems from the Indian Institute of Management.

Feb 06, 2023

The following blog post is one in a series of Cutter 2023 Trends that provide insights into industry challenges and considerations for our clients and member firms in 2023 and beyond.

To execute their mission to protect the investing public against fraud, manipulation, and misconduct, global regulators continue to focus on high fiduciary standards and accountability, placing the client first, and truth in marketing. The US Securities and Exchange Commission (SEC) recently published its strategic plan for the next four years, which includes the regulator’s goal of modernizing its technology so it can carry out its mission in a cost-effective, secure, and resilient manner. As regulators work toward modernizing their technology, is your firm ready to respond?

Although compliance teams historically have not used technology in a big way, Chief Compliance Officers (CCOs) must now look to leverage new technologies that automate many compliance processes and leverage AI to keep pace with the sheer volume of data today’s firms must review. CCOs also need to consider using managed services to help their firms augment staff and keep pace with our changing industry. To address these needs, vendors have extended into traditional areas of compliance such as regulatory reporting and marketing reviews. Because investment management firms should not expect any slowdown in new regulations in 2023, compliance teams must arm themselves with the right modern technology and proper resources.

In 2023 and beyond, compliance teams will need to explore opportunities for transformation that leverage new staff, technology, and managed services ─ or a combination of all three. The stakes are simply too high not to consider every option. We expect this transformation to affect many areas of compliance, including regulatory reporting, electronic communications surveillance, conflict of interest detection, marketing compliance, and validating that investment guidelines translate into accurately coded compliance rules.

To speak with a Cutter analyst or consultant about this trend, contact us at [email protected]. For more Cutter 2023 Trends, see 2023 Trend: Investing in Modern Technologies Unleashes the Power of Data and 2023 Trend: Supporting the Client Through Data and Digitization.