As new SEC, NYDFS, and FINRA rules tighten, financial firms are struggling to keep pace — with manual processes, legacy systems, and limited expertise slowing compliance progress

Omega Systems, a leading provider of managed IT and cybersecurity services, today released a new report, Regulatory Pressure & Compliance Fatigue in Financial Services, revealing that mounting regulatory expectations and outdated tools are straining compliance efforts across the financial industry.

Based on Omega’s survey of more than 300 U.S. financial services executives, the findings show an industry under strain. Nearly half (42%) of respondents cite staying current with evolving regulations as their top compliance challenge, while more than a third (36%) say they lack sufficient internal expertise to meet those mandates. The majority (54%) still rely on spreadsheets or in-house systems to track security controls – a level of manual oversight that leaves firms exposed to documentation errors and audit gaps.

“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 – the kind of discipline that earns lasting trust in the financial services industry.”

The report highlights how new disclosure requirements from the SEC, NYDFS, and FINRA are redefining compliance as proof, not policy – requiring firms to document readiness as rigorously as they defend against threats. Yet many organizations remain constrained by limited budgets, legacy infrastructure, and inefficient manual processes.

Key findings from Omega’s research include:

• Manual processes stall progress: Fifty-four percent (54%) of firms still rely on spreadsheets or home-built systems to benchmark controls, limiting visibility and slowing audits.
• CFOs and CIOs are misaligned: Fifty-three percent (53%) of CFOs rank evolving regulations as a top concern compared to 38% of CIOs, revealing disconnects between financial and technical teams.
• Legacy systems add risk: Half of firms (50%) still operate on outdated or on-premise infrastructure, which cannot meet modern transparency and documentation requirements.
• Automation offers relief: Firms identify data discovery (51%), automated evidence collection (45%), and document management (45%) as top priorities for improving audit readiness and control visibility.

The study concludes that modernization and automation are emerging as the clearest paths to reducing compliance fatigue and improving readiness. Financial firms that integrate managed compliance platforms, continuous monitoring, and automated evidence collection are better positioned to meet today’s regulatory standards — and to prove it when it counts.

These findings build on Omega’s 2025 Survival Imperative: Cyber Resilience in Financial Services study, reinforcing how compliance and cybersecurity have become inseparable as regulatory expectations and cyber threats continue to evolve. The data reflects input from U.S. financial services leaders across family offices, RIAs, wealth managers, hedge funds, private equity, and investment advisory firms, representing organizations with assets under management ranging from $10 million to more than $10 billion.

Omega’s full report, Regulatory Pressure & Compliance Fatigue in Financial Services, is available for download here: https://omegasystemscorp.com/insights/white-papers/2025-financial-services-compliance-report/

About Omega Systems

As a multi-award-winning MSP and MSSP, Omega Systems is passionate about delivering the security and compliance expertise today’s businesses need alongside the responsive and reliable managed IT support they deserve. The company services highly regulated and security-conscious organizations across the U.S., including those in financial services, healthcare and professional services. Omega’s service-driven IT solutions portfolio includes 24×7 managed IT support, cybersecurity risk management, threat detection and response, backup and disaster recovery, multi-cloud connectivity, and much more. Learn more at www.omegasystemscorp.com.

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