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Analysts Say New Regs Will Be Worse Than Sarbox

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A heavier IT burden than Sarbanes-Oxley or the Patriot Act.

 

That's what some say is coming in the regulations that will result from the country's financial meltdown. Like I told my boss earlier, it sounds just plain ugly. What could be worse than Sarbox?

 

In a piece published Wednesday, InfoWorld's Ephraim Schwartz talked to analysts and industry executives who agree that the next round of regulations will require more transparency in "how companies and what they trade are linked together." Larry Rafsky, CEO of Acquire Media, explained:

The last two tsunamis to hit IT, the Patriot Act and Sarbanes-Oxley, required companies to know their customers and to know themselves and their [own] finances. Now, the upcoming regulations will say, "Know your customers' finances."

And IT will bear the burden because IT will use more audit and review technology to enforce those requirements. The reporting requirements will be stiffer and will require more detail.

 

Companies will be looking for different skills on their IT teams, too. For instance, IT staffers will need a significant degree of business savvy to implement and administer the systems that will monitor the finances of a company's customers, Rafsky said. Craig Carpenter, who is general counsel at Recommind, told InfoWorld that IT folks with legal expertise may also be in high demand because companies who suffered huge losses may face lawsuits.

 

Also according to Carpenter, and perhaps most significant, "Anybody that deals with brokers, banks, and credit-risk-based assets will have to be involved." In other words, the newest regulations won't be limited to the financial industry. The good news is, it might mean more job security for IT.

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