Overview As firms prepare their annual ADV updates or review their compliance programs, one area […]
What Help Do Compliance Clients Need? By Lori Tripoli Law Practice Management Expert Even as the regulatory environment burgeons and touches on seemingly every aspect of everyday life as well as on one’s workaday world, it can be easy to forget how flummoxed the regulated community might be by even a slight change in a regulation’s parameters. Even as a newly finalized regulation might not take effect for a period of time, those subject to it may still be challenged to revise or implement various business policies and practices to comply with it. Simply adding a new field to a computerized form can be a hassle; what if whole new systems have to be developed? A regulatory change can be that much more imposing where the regulated entity is an especially large one, spread across multiple functions and jurisdictions. Gearing up to comply with a new regulatory regime and informing stakeholders of the need to do so isn’t easy.
Moreover, “many firms are still struggling with antiquated and manual internal processes,” explains Mitch Avnet, managing partner at Compliance Risk Concepts in New York. “They need to challenge what has historically existed — and ensure they are building processes that can be automated and become easily repeatable,” Avnet notes.
“‘Compliance’ is a broad rubric that encompasses many regulatory frameworks,” explains Laura Martino, general counsel and national compliance director for Tower Legal Solutions in New York. That, of course, is where a compliance consultant can assist a business in addressing new regulatory requirements. Will systems have to be revised or newly developed? Will new procedures have to be put in place? Will new reporting requirements apply? Will employee training have to be developed and rolled out? This is where a compliance consultant may be of great service to a corporation. “Tower’s compliance practice areas are anti-bribery, third-party due diligence, sanctions screening, anti-money laundering, financial compliance and cybersecurity,” Martino explains. “Given Tower’s focus on anti-bribery and sanctions compliance, Tower helps companies address risks posed by doing business with blacklisted and restricted persons as well as third-party intermediaries. Industries that are especially impacted are those with international supply chains and those that rely on global channel networks for doing business. This is due to the fact that companies can be liable for the acts of their third-party intermediaries,” Martino says.
"The assistance that Compliance Risk Concepts provides can include “strategic organization modeling, complete outsourcing of a compliance function, overflow support (personal dealing reviews, electronic communication reviews, etc.), project support (mock regulatory exams, regulatory filings, policy and procedure development, employee training), regulatory exam management, and compliance technology procurement and implementation.,” Avnet says.
How exactly any compliance consultant works with clients can, of course, vary. “Tower’s compliance practice works across function areas: corporate in-house counsel, human resources, corporate compliance, risk and security, and more. One of the benefits of working with Tower in an outsourced engagement is Tower’s ability to harmonize compliance practices across several function areas and streamline workflow based on best practices, experience, and third-party objectivity,” Martino says. Click here to read the full article on about.com