Categories
Coffee and Regs

Mastering the Marketing Rule

Mastering the Marketing Rule

 

In this episode, CSS’s Co-Executive Directors of Compliance Services Keith Marks and Jackie Hallihan sit down to discuss actionable takeaways on implementing the SEC’s new Marketing Rule for registered investment advisers within the next 18 months.

 

 

About Our Guest Speakers:

 

Keith Marks is involved in the management and distribution of Compliance Solutions Strategies’ (CSS) products and services. He works across CSS to find regulatory data and reporting solutions that investment managers need. Keith manages a team of Directors, Consultants and Compliance Managers in CSS’s Compliance Services team who provide consulting, annual compliance program reviews, risk assessments, on-site mock examinations, registration services, and cybersecurity services to institutional wealth managers, private fund managers, retail wealth advisers, and registered investment companies. He also helps coordinate educational conference agendas and speakers. Keith is an author, product contributor, and thought leader. His product contributions have included the design of the Form ADV Part 2 Template distributed to over 6,000 advisers in 2010-12, and his vision of compliance program management built into CSS’s Compliance Management solution. With his colleagues, Keith’s most recent significant publication is “Big Data, Using Data Analytics”, Modern Compliance vol. 2, ch. 23 (2017). Keith joined Ascendant in 2007, and became a part of CSS in 2016. Prior to Ascendant, Keith was an instructor for the Center for Compliance Professionals and Director of Investment Adviser Services at National Regulatory Services (NRS). Keith practiced law previously as an Associate with Day, Berry & Howard LLP (now Day Pitney LLP), a Hartford, Connecticut law firm in 1996-98. Keith served as a law clerk for two years in Connecticut’s Supreme Court and Appellate Court after earning his Juris Doctor degree Magna Cum Laude from Western New England University School of Law and his Bachelor of Arts Magna Cum Laude from the University of Connecticut. He is a member of the State Bar of Connecticut, and is actively involved in raising funds for the Polycystic Kidney Foundation (www.pkdcure.org). Keith served as President of the New England Broker Dealer Investment Adviser Association (NEBDIAA), a non-profit organization, incorporated in 1997, from 2012-17. He has been on the Board of Directors of SOAR Educational Enrichment, Inc. since 2013, and Board Chair since 2015. SOAR is a privately funded 501(c)(3) providing educational enrichment programs to Keith’s local elementary school.

 
Jackie Hallihan is the Co-Executive Director of CSS’s Compliance Services team and has over 25 years’ regulatory and risk management experience. She was the founder of National Regulatory Services (NRS) which started the compliance resource business and served as its President for over 20 years. She also founded the National Society of Compliance Professionals (NSCP), a non-profit organization for compliance officers, staff and lawyers serving the compliance industry. It now boasts over 2000 memberships. Jackie has been a leading speaker to compliance professionals, including in-house training programs and various other industry association conferences, and has received numerous industry awards. Jackie also serves as Director, Clerk of the New England Broker Dealer Investment Adviser Association (NEBDIAA), a non-profit organization, incorporated in 1997. The purpose of NEBDIAA is to provide a forum for the professional exchange of information among investment advisers, broker dealers, and persons who provide services to investment advisers and broker dealers, and to direct communication among its members which will improve their ability to serve the needs of their respective clients. The forum will help NEBDIAA’s members meet the increased regulatory demands placed on investment advisers, broker dealers, and persons who provide services to investment advisers and broker dealers.

Categories
Innovation in Compliance

Smart Automation for Risk Management: Part 1, Introducing Lextegrity

Welcome to a multi-part podcast series, Smart Automation for Risk Management, sponsored by Lextegrity Inc. Over the course of this series, we will be visiting with Parth Chanda, Founder and Chief Executive Officer (CEO), Andy Miller, Chief Analytics Officer, and Kara Bonitatibus, Head of Product. We will look at the Lextegrity Product Suite, take a deep dive into continuous risk monitoring, consider pre-approvals and third-party due diligence and integrations and user experience. In a special bonus episode, Chanda and I will discuss the Integrity and Analytics Collective. In Episode 1, we meet Chanda, Miller and Bonitatibus who introduce Lextegrity and the Lextegrity Product Suite.

Lextegrity began through a frustration Chanda had with the then products available to him for a compliance solution from the data analytics perspective, which would utilize data for risk management. Out of this frustration, Lextegrity was founded by subject matter experts across compliance, legal and audit disciplines with a real passion for risk management. Chanda wanted to combine more powerful tools with a world-class user experience all in a software solution. This comprised a more powerful and highly flexible automation and workflow technology integrations with other enterprise systems. So, we thought “why not build that dream software solution that we all wished when we were in house, focused software suite focused on spend and counterparty risk, including fraud, bribery, corruption, asset misappropriation, sanctions, conflicts of interest, and then addressing those risks using workflow as well as data analytics across the lifespan of those risks.”

Chanda noted that within the space of digital transformation for risk management, Lextegrity is “right at the center of that transformation. Lextegrity has a workflow solution on one side that can really manage any workflow. The common ones are a third-party due diligence, conflicts of interest gifts, and hospitality, even industry specific workflows like HCP engagements and grants management for our life sciences customers.” Chanda said the Lextegrity system also creates workflows that integrate with Human Resources (HR) and financial systems to implement more powerful controls. “We have customers who approved donations in our system. We also have customers go to SAP to initiate the payment process, which connects to the Lextegrity system so that adds another layer of control.”

Chanda went on to explain that Lextegrity has “a risk monitoring data analytics solution that connects with ERP systems, HR systems to risk score, every single transaction, together with workflows to manage those transactions visualizations and to visualize that enterprise risk as well.”  The bottom line is that “data really is at the core of what we’re doing, but it’s really, even more than that. We are really trying to solve internal control problems for our customers.” All of these factors have led to the emergence of Lextegrity as one of the most powerful risk and compliance platforms in the compliance space. Chanda noted that the Securities and Exchange Commission (SEC) specifically cited Lextegrity software in Alexion Pharmaceuticals’ Foreign Corrupt Practices Act (FCPA) resolution as part of their remediation credit, “which also helped them avoid the monitor”. Further, nearly 50% of the Lextegrity customer base today has selected the company’s products after a publicly disclosed FCPA matter. Lextegrity is “consistently being turned to help remediate programs, which gives us opportunities to be in front of authorities.” Join us tomorrow where begin an exploration of continuous risk monitoring.

For more on Lextegrity, check out their website here.

Categories
Innovation in Compliance

Using Your Data to Get a Better Answer with Neil Lustig


 
Neil Lustig, CEO of GAN Integrity, brings a non-lawyer perspective to compliance, Tom Fox says. Neil spent the first half of his career working at IBM as an engineer and later in sales and marketing. “For the second half of my career – the last 15 or so years – I’ve been running young technology startups and early stage companies based out of both Silicon Valley and New York,” he tells Tom and Valerie Charles. Tom comments that the compliance industry needs someone like Neil, who can talk about using data. In this week’s show, they talk about why compliance needs to embrace data and the future outlook for the industry.

The Change is Inevitable
Tom, Valerie, and Neil discuss why compliance should embrace data and automation. “Data injected into the [compliance] space changes you and makes your team much more strategic,” Neil remarks. “The data allows you the insights to add a whole different level of value to your company.” More automation in the industry will bring more data and more connections to external data sources. Compliance is inevitably heading in that direction, Neil predicts, so leaders need to plan and hire for the change. Tom comments that compliance officers should see data as an opportunity to add value, “rather than being Dr. No from the Land of No.” Neil agrees that it’s an opportunity to change how compliance is perceived and elevate the profession.
Getting a Better Answer
“Can you tell us a little bit about how your experience working in marketing technology has helped you … be a leader of how to utilize data in compliance?” Valerie asks Neil. “It’s actually about just getting a better answer,” he replies. People want to buy outcomes, such as lower risk and higher profitability; technology happens to be the path to those outcomes. As such, Neil advocates starting with the outcome you desire and then choosing the technology that would get you those results. He explains why GAN Integrity is poised to deliver results to the compliance industry through their innovative platform, and a grand vision “to build out this platform to have process automation for every compliance process in the modern enterprise.” 
Into The Future
Companies should be proactive about injecting automation into all their processes, Neil advises. Automation generates data, and that’s what the next few years will be about. He predicts that there will also be interoperability: companies will have access to and swap data with external data sources.  “We as an industry have to tackle making it easier to get the world of data into a place where it can be seamlessly integrated into a workflow [or] a process,” he comments. Leaders need to start recruiting teams in preparation for “the intersection of law and data and technology.” For GAN Integrity the opportunity is in simplifying compliance so that it becomes a valued partner to businesses.
 
Resources
GAN Integrity
Neil Lustig on LinkedIn
 

Categories
FCPA Compliance Report

Quyen Truong on the Direction of the CFPB under the Biden Administration


In this Episode of the FCPA Compliance Report, I am joined by Quyen Truong, partner at Stroock & Stroock & Lavan. During her career in government, she worked at the Consumer Financial Protection Bureau. She joins me to talk about the CFPB under the Biden Administration.  Highlights of this podcast include:

  1. What is the CFPB? What does it regulate?
  2. What is the likely impact of Rohit Chopra to head the CFPB?
  3. What will he need to do to rebuild the morale of the CFPB?
  4.  What do you see as the direction by the CFPB in regulation and enforcement?
  5. Any new policy initiatives or directives?
  6. What is the interaction between the CFPB and the states? How might that change under the Biden Administration?
Categories
Daily Compliance News

April 12, 2021 the Preet to Vox edition


In today’s edition of Daily Compliance News:

  • Preet Bharara podcast empire sold. (WSJ)
  • US businesses to fight voter suppression laws. (WSJ)
  • Did Google use inside information to purchase/sell ads? (WSJ)
  • Supply chain SW provider to IPO. (WSJ)
Categories
Sunday Book Review

April 11, 2021, the Ecotourism Mystery Edition


In today’s edition of Sunday Book Review:

Categories
Daily Compliance News

April 10, 2021 the World Record edition


In today’s edition of Daily Compliance News:

  • When is a world record not a world record? (NYT)
  • How will the WSJ focus going forward? (NYT)
  • FinCen budget increase proposed? (WSJ)
  • Export control sanctions slapped on Chinese firms. (WaPo)
Categories
Creativity and Compliance

The L&E Creative Process

Where does creativity fit into compliance? In more places than you think. Problem-solving, accountability, communication, and connection – they all take creativity. Join Tom Fox and Ronnie Feldman on Creativity and Compliance, part of the Compliance Podcast Network. In this episode, Ronnie talks about the Learnings and Entertainment creative process. Some of the areas we explore are:

  • Discovery & Info Gathering: It’s always first and foremost about focusing on what’s true.
  • How are we inspired to of creative ways to use the messaging?
  • Examples of Speak Up Content
  • We tend to pull from creative devices we use in our everyday lives
  • Our Process
  • Discovery & Information Gathering
  • Client review, feedback and approval

Resources:

Ronnie Feldman (LinkedIn)
Learnings & Entertainments (LinkedIn)
Ronnie Feldman (Twitter)

Learnings & Entertainments (Website)

60-Second Communication & Awareness Shorts – A variety of short, customizable, quick-hitter “commercials” including songs & jingles, video shorts, newsletter graphics & Gifs, and more. Promote integrity, compliance, the Code, the helpline and the E&C team as helpful advisors and coaches.

Workplace Tonight Show! Micro-learning – a library of 1-10-minute trainings and communications wrapped in the style of a late-night variety show, that explains corporate risk topics and why employees should care.

Custom Live & Digital Programing – We’ll develop programming that fits your culture and balances the seriousness of the subject matter with a more engaging delivery.

Tales from the Hotline – check out some samples.

Categories
This Week in FCPA

Episode 247 – the GES edition


As the Baylor Bears win their first NCAA BB title and Ethisphere’s annual Global Ethics Summit is just around the corner, Tom and Jay are back to look at this week’s stories top compliance and ethics stories which caught their interest on This Week in FCPA. This week we are joined by special guest Kevin McCormack from Ethisphere who highlights the 2021 Global Ethics Summit.
Stories

  1. Credit Suisse feels the pain of poor risk management. Matt Kelly in Radical Compliance. Dylan Tokar in the WSJ Risk and Compliance Journal. Tom Smith in the Financial Times.
  2. Jason Meyer sees a win for compliance and ethics, on LinkedIn.
  3. Is a SOX whistleblower required to prove fraud? Jason Zuckerman in the Whistleblower Protection Blog.
  4. Karen Woody named Herndon Fellow. Peter Jettons in The Columns.
  5. Accountability: it’s all of us. Sam Sliverstein in LinkedIn.
  6. Time for a national privacy law. Steven Cavey in CCI.
  7. Is what you need Goldilocks compliance? Jeff Kapan in CEP.
  8. Ready to move into compliance or risk management? Dick Cassin says asks some questions first, in the FCPA Blog.
  9. How to protect whistleblowers? Alexander Ghavinian in the FCPA Blog. Six principles of whistleblower protection. František Nonnemann the Risk and Compliance Platform Europe.
  10. As int’l anti-corruption evolves, is the US losing its place. Robert Clark explores in the FCPA Blog. 

Podcasts and Events

  1. On Integrity Through Compliance, Don Stern and Eric Feldman host former DAG Rod Rosenstein for a two-part series on the past, present and furture of compliance and independent monitoring. Check out Part 1 here.
  2. Tom and Megan Dougherty are doing a special podcast series around The Falcon and The Winter Soldier, currently streaming on Disney+. Check out Episodes 1&2 and Episode 3.
  3. This month on The Compliance Life, Tom welcomes Jonathon Kellerman. In Episode 1, Jonathon discusses the path he took to compliance.
  4. CCI releases a new eBook, The FCPA Year in Review by the Compliance Evangelist, Tom Fox. You can obtain a copy here. Best of all its available at no charge.
  5. Join Tom and Jay at Ethisphere’s 2021 Global Ethics Summit, which will be held virtually April 13-15. Listeners to this podcast will receive a 15% discount to Ethisphere’s Global Ethics Summit For more information and registration details click here. Use the code tomfox15 for your discount.
  6. Join K2 Integrity’s financial crimes compliance professionals on Thursday, 22 April 2021, at 10 AM ET for DOLFIN’s “Ask an Expert FINQuiry” webinar, for a discussion on the impact of ongoing developments in the financial integrity community. Information and Registration here.
  7. Tom announces his latest book, The Compliance Handbook, 2nd edition is available for presale purchase. Use the code FOX25 and go here. The Compliance Handbook 2ndedition will be available in both print and eBook editions. This week on The Compliance Handbook podcast, the ladies from #GWIC join Tom for a deep dive into written standards.

Tom Fox is the Voice of Compliance and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.

Categories
Daily Compliance News

April 9, 2021 the Risk Management Failure edition


In today’s edition of Daily Compliance News:

  • CC start up hires former CFPB rep for GC/CCo role? (WSJ)
  • Why did risk management fail so spectacularly at Credit Suisse? (WSJ)
  • Is GA.’s new voter suppression law based on corruption? (MSNBC)
  • Norberg leaving SEC Office of the Whistleblower. (WSJ)