In this Greenwich Report, Greenwich Associates closely examines the immediate and long-term effects the unprecedented year of 2020 will have on regtech going forward.
The industry is only now, with the benefit of a few months' hindsight, beinning to measure the extent of the effects of the nearly overnight operational transformation. More importantly, industry participants and regulators are evaluating how to adjust to what are likely permanent changes to the global financial industry's compliance infrastructure.
MethodologyIn Q3 2020, Greenwich Associates interviewed 210 professionals and executives working directly in compliance roles for the 2020 Global Compliance Study, executed in partnership with Nasdaq. Interviewees were highly experienced, with 61% working at a director or executive level and 65% serving in a compliance role for 6 years or more. The participant base represented broker-dealers, buy-side firms, corporate entities, retail banks, and market infrastructure entities. Global distribution of respondents was wide, with the largest share of responses (36%) coming from the United States, followed by Asia-Pacific (30%), EMEA (19%), and Canada (13%).
Proprietary analysis of the Global Compliance Study results was completed by Greenwich Associates in 2019 and 2020. Historical study results dating back to 2015 were provided by Nasdaq and were used by Greenwich Associates to interpret trends over time, as the distribution of participant demographics have remained consistent. Where applicable, statistical significance testing was conducted by Greenwich Associates. Statistically significant conclusions indicate that the selected responses lay outside of two standard deviations from the mean when tested at the 95% confidence level.
