Dodd-Frank Act Compliance & IT System Solutions
Dodd-Frank Regulations are Still Changing! We Can Help You Prepare for What's Coming.
Even after one year, Dodd-Frank and its requirements are unclear to the totality of the organization. Many institutions are unprepared because most regulations are not finalized and many deadlines are not set. Considering all the uncertainty surrounding the Dodd-Frank Act (DFA), it's critical that your organization remains up-to-date and flexible. It is imperative to partner with a business solutions provider that has world-class resources and proven hands-on-expertise that is wide and deep, as well as industry centric and specific.
At Infosys our multi-functional team includes business consultants and subject matter experts who gauge, study and understand the evolving intricacies of the new Dodd-Frank regulatory environment and product specialists and
quality assurance experts who can design and implement integrated Dodd-Frank compliance and IT system solutions. This helps ensure that our customers are compliant as regulations take effect in the future.
This New Landscape Requires Your Business to Adapt
Set into three critical areas, the Dodd-Frank Act (DFA) is designed to:
- Clarify federal regulatory powers;
- Mandate changes to make financial firms' investment strategies and service offerings safer, and;
- Reform capital market standards and enforcement.
For instance, the new rules stipulate more stringent bank capital standards that dictate higher capital requirements, while instructing risk managers to implement a series of new investment ratios, formulas and compliance systems designed to red-flag excessive risk-taking behavior. The new regulations call for more flexible systems that provide heightened transparency for regulators, while allowing financial institutions to legally scale in reaction to various market conditions. Ultimately, DFA aligns U.S. banking regulations with international standards, as stipulated by the Bank of International Settlements (BIS) and other supranational organizations. This in turn will push compliance officers to dramatically alter global monitoring systems in a uniform fashion.
Better documentation will be required across a broad spectrum of sectors including investment advisory registration, securitization standards, corporate governance, and consumer lending. Creating consistent reporting systems is an issue that IT and compliance officers are still grappling with.
DFA was signed into law in July 2010. However, one year of rule writing, regulatory stipulation and intensive study by a multitude of federal agencies, has in many cases, produced more uncertainties for the investment banking and the financial services industry than was present at the initial phases of this massive regulatory undertaking.
How Do You Know What's Next? Infosys has the Expert Knowledge and Experience to Help.
During this time of heightened uncertainty, it is crucial that your organization understands and responds to the new reality that has been introduced by the DFA. This response needs to be strategic, companywide, and driven from the most senior levels of your organization.
Strategically, Infosys advises firms to:
- Engage in a preparation process before all the rules are finalized;
- Assess your institution's current risk status and potential responses based on the intent of DFA and not on its final implementation by the regulators, and;
- Anticipate the impact of DFA on your organization from a 360° frame of reference.
Infosys' DFA Capabilities
As you go forward, Infosys has the domain expertise to help integrate and analyze different data streams that are required by DFA. Our consultants can help securities firms develop revised risk measurement functions that can convert loss estimates into regulatory capital requirements. Our IT specialists can aid in bringing customized tools to market quickly with the most stringent QA measures integrated into the new applications. Our areas of expertise include:
Program Execution and Testing: Focused validation and QA for stress testing, scenario analysis and a global delivery model for the most cost effective execution.