READING, PA — A growing wave of regulatory mandates is putting intense pressure on financial firms that still depend on manual processes and aging technology, according to a new report from Omega Systems. The study, Regulatory Pressure & Compliance Fatigue in Financial Services, shows firms struggling to keep up as SEC, NYDFS, and FINRA rules tighten expectations around documentation, transparency, and cyber readiness.
Omega surveyed more than 300 U.S. financial services executives and found widespread concern about staying current with evolving regulations. Forty-two percent of respondents cited rapid rule changes as their top compliance challenge, while 36% said they lack internal expertise to meet new requirements. Despite rising scrutiny, most firms—54%—still track security controls through spreadsheets or home-built systems, increasing the risk of errors and audit delays.
“Resilience used to mean protection,” said Mike Fuhrman, CEO of Omega Systems. “Today, it means proof. Regulators, investors, and clients want confidence that firms can defend their systems and demonstrate compliance with clarity and consistency.”
Omega’s findings reflect a shift in regulatory focus: firms must now show evidence of readiness, not just maintain policies. Yet many remain hindered by outdated infrastructure, limited budgets, and fragmented workflows.
The report highlights several trends shaping the industry:
• Manual processes slow compliance: More than half of firms rely on spreadsheets or in-house tools to benchmark controls, limiting visibility and slowing audits.
• Leadership gaps persist: Fifty-three percent of CFOs list evolving regulations as a top concern, compared with 38% of CIOs, signaling misalignment between financial and technical priorities.
• Legacy systems increase exposure: Half of firms continue to operate on outdated or on-premise systems that cannot meet modern transparency demands.
• Automation is gaining traction: Data discovery (51%), automated evidence collection (45%), and document management (45%) rank as top areas for investment to boost audit readiness.
Omega concludes that modernization—through managed compliance platforms, continuous monitoring, and automated evidence gathering—is emerging as the most effective path to reducing fatigue and meeting regulatory expectations. The company notes that compliance and cybersecurity are now inseparable, with both increasingly shaped by federal and state oversight.
The study draws from financial leaders across family offices, wealth managers, RIAs, hedge funds, private equity firms, and investment advisers, representing assets under management ranging from $10 million to more than $10 billion.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.