S6:E1 | Maximizing Your Compliance Resources | Compliance In Context

The Securities Compliance Podcast: Compliance In Context

Welcome back to the Compliance In Context podcast! On today’s show, on today’s show, we will be taking a topic known all too well by those in the compliance space, namely maximizing your compliance resources, doing less with more, and getting the most out of what’s available to effectively run your firm’s compliance program to the best of your ability. To help guide us through the conversation, we welcome Louis Dempsey and Bart McDonald from Renaissance Regulatory Services. In our Headlines section, we review a some recent rule withdrawals and some leadership changes at the SEC , and finally, we close up today with another installment of Outtakes, where a recent enforcement action reminds us of the importance of having proper disclosures for fees and conflicts of interest.

Headlines

• SEC Withdraws 14 Rulemaking Proposals
• SEC Chair Atkins Fills Key Leadership Roles

Interview with Louis Dempsey and Bart McDonald

• Background on maximizing your compliance resources
• Discussing best practices to operate on a limited budget
• Evaluating the impact of new regulations, including the FinCEN AML Rule and Regulation S-P
• Analyzing compliance efficiencies in Code of Ethics, electronic communications, conflicts of interest, registration and licensing, compliance testing, and documentation of completed tasks
• Reviewing the significance of a strong training program.
• How does your firm’s registration type impact how you can best maximize compliance resources?

Outtakes

• Recent enforcement action reminds us of the importance of having proper disclosures for fees and conflicts of interest.

Quotes

08:48 – “Really, the risk assessments are incredibly important to help you focus where you want to put your energy and put your time and we'll get into some of that later. From a bigger picture standpoint, you want to leverage your custodians, your custodial relationship. They all have tools that they provide and can help from a compliance perspective, whether those are exception reports, trade reports—and don't forget you also most of them have discounts for other vendors—so whether it's proxy services or really a whole host of items, you want to become familiar with that, you want to stay on top of the reporting capabilities, and...you also have the NSCP. So you really want to look at joining compliance roundtables or other peer networks—that really helps from a practical standpoint.” – Bart McDonald

13:06 – “Think of compliance as a journey, as a road trip. You've got a certain amount of things that you need to get done and you've got 365 days to get them done in. Create a map, create a checklist, create a calendar on what you're going to do and when you're going to do it. Don't wait till the end of the year to do all your testing. Do things throughout the course of the year. If you're a big picture person, no matter how much you know the rules, no matter how much you know the laws, no matter how long you've been in the industry, you still have to have that. And if you're not a detailed organized person and you have the resources, hire somebody that is, that can be that navigator for your compliance program.” – Louis Dempsey

34:24 – “Your weakest link is probably your reps. So, you really, especially from a customer information standpoint, so you really want to put some good training together. And, you know, I know that can be “here, do this, you know, this webinar” or “do this little read this,” but you really want to, you know, get in front of them. And, you know, like with anything—like with my kids—you got to say it three times before they hear it. So you really want to push that training.” – Bart McDonald