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News < Back Compliance : Sarbanes Oxley : Technology : Survey The US Leads The UK in Compliance Culture - But Is It Damaging New York as a Financial Center?
A survey conducted simultaneously in the financial districts of New York and London in October 2006 has discovered a key difference in regulatory compliance culture: while Wall Street employees broadly support a firm's right to monitor their communication, they are also more likely to circumvent communication controls. A total of 300 people working in the Wall Street and City areas of New York and London, two of the world's busiest financial districts, were surveyed. The research discovered that: ? In New York more than 60% of respondents thought that it was right that their employer should monitor their e-mail. By contrast, in London less than half (38%) supported their firm's right to monitor e-mail. ? Employees in the New York finance sector are under heaviest scrutiny. In New York almost three quarters of respondents who worked in the finance sector thought their e-mail was already monitored (74%), compared to 62% of London finance workers. Only 28% of non-finance employees in New York believe their e-mail is monitored. ? New Yorkers are more likely to try to dodge e-mail monitoring: 60% admitted that they had sent something that they "didn't want their employer to know about" using webmail. This compared to 42% of London respondents. ? More than seven out of ten New York-based finance workers admitted they had received an e-mail that broke corporate or regulatory policies, compared to just 36% of London City employees. Non-compliant communication is not just a problem in the finance sector; over half of non-finance workers in New York and London admitted to receiving e-mails that broke corporate policy (52% and 57% respectively). The survey confirmed that today's businesses rely heavily on e-mail as their primary business communication channel. When asked to estimate the number of business e-mails sent and telephone calls placed per day, the vast majority of respondents used e-mail over the telephone in a ratio of 8:7. On Wall Street, the average finance worker uses e-mail for a third more communication than the telephone. Zeus Kerravala, SVP of Enterprise Research for Yankee Group agreed with the market challenges around e-mail. He said, "The problem of regulating electronic communication is not just a problem for the heavily regulated sectors such as banking, finance and insurance. We are seeing a shift in the market as companies outside the heavily regulated sectors realize the problems presented by the accessibility of communication tools such as e-mail and the possibilities this presents in terms of inappropriate employee behavior, loss of IP and damage to corporate reputation." The differing regulatory environments in New York and London have been seizing headlines. New York's Economic Development Corporation last month appointed consultancy firm McKinsey to research whether US regulations are driving companies to list in London rather than New York. This follows high profile reporting of the London Stock Exchange's exemption from US regulations. London Mayor Ken Livingstone has attributed London's growth as a financial center to two words: 'Sarbanes' and 'Oxley'. Bo Manning, CEO of Orchestria, said: "We should expect competition between two of the world's leading financial centers, but there is increasing media speculation that stiff US regulations could be damaging business in New York. The London Stock Exchange has just seen one of the largest IPOs in its history with Rosneft raising more than $10.4 billion. Meanwhile, not one of the top ten IPOs of 2005 took place in New York." He added: "Our survey shows there is broad support among employees for regulatory controls in New York. People recognize that regulations act in the interests of companies, their employees, investors and the markets in which they operate, while reducing the risks of doing business. Moving abroad is not a solution; it does not address the risks that regulation has been introduced to control. The solution is to use technology creatively to effectively manage communication and enforce good messaging governance." Orchestria enables companies to control electronic communication to defend against confidential data leakage, enforce regulatory compliance, protect intellectual property, adhere to critical financial and legal controls, and to ensure appropriate employee behavior. Orchestria adds controls to the use of electronic communication, such as e-mail, instant messages, web transactions and mobile devices, and is used by Fortune 500 companies to implement and maintain good messaging governance. 90 customers in 33 countries rely on Orchestria to enable them to benefit from the speed and flexibility of electronic communication without exposing themselves to the risk of uncontrolled interactions. Orchestria's approach works in real-time, and is unique in its ability to analyze all common electronic communication channels to determine their context and content with unparalleled accuracy, and to discern the user's intent. It prevents inappropriate communications from ever being sent, ensuring they are not archived for later discovery. Orchestria also guides and advises end-users while preserving workflow. It is integrated with solutions from leading archive vendors, including Symantec, ZANTAZ, IBM and Iron Mountain Digital. The company was founded in 2000 and is headquartered in New York. More details can be found at www.orchestria.com 
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