by Angela Guess
Mark Burnelli recently discussed an act that may affect the data governance practices of financial companies. Brunelli writes, “Financial institutions better get ready for new regulatory compliance mandates stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act, or they may soon find themselves dealing with costly data management problems, according to experts.”
The article continues, “The new compliance rules, which are being created to help government regulators identify ‘systemic risk’ and avoid another economic meltdown, have yet to be clearly defined. But there are some key steps that banks and financial services firms can take to start preparing now. They include embracing standards, setting up a comprehensive data governance or master data management (MDM) program, and conducting a thorough audit and remediation of data stores.”
It goes on, “What’s clear today is that the Dodd-Frank Act is focused on ensuring the transparency of information in a handful of key areas… That includes instrument reference data or contractual information related to financial ‘instruments’ like equities, bonds and derivatives; entity reference data, which is used for counterparty risk assessment and defines who is doing business with whom; pricing data; and information about portfolio holdings.”
Learn more about the Dodd-Frank Act here.
photo credit: epicharmus
