September 11, 2014
The path to Implementation and Regulatory Compliance
By Rick Ross
The most comprehensive financial regulatory reform measures taken since the great depression are in the implementation stage right now as multiple governmental, banking and trade entities grapple with reliable fraud-proof methods of achieving the common requirement for mobile trade data collection, data integrity and thus personal accountability at all levels of financial trade and especially at the point of sale.
The passing of the Dodd-Frank act in July of 2010 resulted in the creation of the Financial Stability and Oversight Council made up of members from the Treasury, Federal Reserve, OCC, SEC, CFTC, FDIC, FHFA, NCUA and the Bureau of Consumer Financial Protection and have been given the task of regulating financial institutions here in the US and ultimately restoring investor confidence.
The purpose of the newly formed oversight council is to:
- Identify risks to U.S. financial stability that may arise from ongoing activities of large, interconnected financial companies as well as from outside the financial services marketplace
- Promote market discipline by eliminating expectations of government bailouts, and
- Proactively respond to emerging threats to US financial stability.
The sum total of these emerging regulations across multiple government agencies share the common grass roots need to craft mobile trade data collection plans which adequately measure and monitor compliance at all levels of mobile trade at the point of sale, it incentivizes banks, broker-dealers and investment advisors to proactively pursue solutions that will renew existing client investor confidence, and is ripe for wireless carriers investing in the Big Data solutions push working in conjunction with Tango Networks clientless Mobile Call Recording solution.
The Financial Stability and Oversight Council (FSOC) is implementing changes that affect the oversight and supervision of financial institutions and is responsible for implementing and enforcing strict compliance to consumer financial laws. The FSOC has created the Office of Financial Research to support the council to research data collection and process, solution feasibility, benefits, costs, and reporting structure. The multiple government agencies that make up the FSOC will each take pointed responsibility of regulating the various thrift holding companies, National Banks, Hedge Funds and more. These regulators will be required to implement regulations that prohibit banks, bank holding companies and certain non-bank financial institutions from proprietary trading and investments and sponsorship of hedge funds and private equity funds.
The daunting task of casting an audit-proof data collection net across the numerous financial trade institutions will ultimately require that this new oversight council create a point of sale random sampling and auditing process which must include mobile phone trading to ensure uniform compliance to these new regulations is achieved. Without the potential “big brother is watching” threat of such an audit, the council’s efforts would ultimately fail in their mandate as the task of restoring investor confidence hinges on installing such measures.
The old school method of traders running to a fixed landline phone integrated with expensive turrets and an on-premise Private Branch Exchange (PBX) for recording trades can be overlaid with the Tango Networks high availability architecture for clientless (“app-less”) SIP-based Active call recording, protected by security protocols for tamperproof Mobile Call and SMS Recording policy enforcement.
Banks and broker-dealers with staff investment advisors have initiated inquiries into the wireless telecom carrier arena globally to try and find an app-less network-based solution that can satisfy emerging regulations of compliance for mobile financial trade recording and policy enforcement.
Because the technology works on any mobile phone and there is no app for end users to potentially disable or bypass, mobile call and SMS recording simply happens and is transparent to the end user. The excitement of having the right solution at just the right time is in the air at Tango Networks as the regulatory compliance clock runs down and interest in Tango’s unique Mobile Call Recording solution grows.