2011 is shaping up to be remembered as the year of regulatory change. While Dodd-Frank, the Volcker Rule and other regulatory notices have been in the pipeline for months, 2011 will be the year that most of these regulations are put into practice. While many firms have been struggling or stressing over the fact that these policies will ultimately change the way they operate in certain capacities, others have been embracing it. So now the question arises: Could regulation be the beginning of new business opportunities?
SunGard is one firm that sees the possibilities that lie ahead in 2011 and have recently announced that they will be adding a regulatory & risk consulting practice to their repertoire. Buy-side firms will be in need of a quick and efficient way to make sure not one branch, but all branches of their business are compliant with the new regulations. SunGard has identified this need and is creating solutions that will help manage cross-platform information. They have pointed out that, “by assessing business process management, risk management, reporting and compliance programs and technology, firms will be better prepared to address shortfalls, improve efficiencies and service and reduce risk.” SunGard is not the only firm however to have a regulatory consulting branch, Wolters Kluwer also offers services that are strictly to aid needs that will arise from regulation policies.
TowerGroup has done some research that proves that this foresight and initiative is in the right place. Rodney Nelsestuen of TowerGroup said, “Spending on technology will be largely devoted to addressing regulatory requirements in 2011, but vendors must help identify and articulate other strategic business value these IT investments offer that may not be immediately evident.” This is perhaps why SunGard is offering a valuable consulting service over a new platform or solution.
Only time will tell if other software companies and consulting firms will expand their horizons to include a regulatory business aspect to their resume. So while Dodd-Frank may be a hurdle to some, others have realized that they can embrace these changes and even prosper from them.