Episode 87: The Importance of Implementing Compliance Technology

On episode 87 of the CCO Buzz, we discuss the advantages of compliance technology with Core Compliance’s Managing Director of Consultation Services, Tina Mitchell.


CCO Buzz: Hello and welcome back! Someone wise said that the only thing in life that is constant is change. I’m not sure who this wise person was, but they hit the nail on the head. I, for one, am not the same person that I was five years ago, let alone 3 months ago. In fact, I can’t think of many details in my daily life that has stayed the same in the past year, especially.

I think the same can be said for the industry. Over the course of the past year, the world was forced to change – and so were the needs and the demands of our clients and business.

Enter the saving grace of technology. Technology has transformed the landscape of how we operate and go about our daily lives, but also how we do business. And today, we’re excited to discuss the advantages of technology with Core Compliance’s Managing Director of Consultation Services, Tina Mitchell. She’s here to unpack how the changes within securities regulations have transformed the industry’s implementation of compliance technology into an essential part of a firm’s continued growth.

With that, let’s begin.

Tina, as many of our listeners may be tuning in because they’re starting the compliance technology conversations at their own firms, what do you believe are the direct benefits of compliance technology?

Tina Mitchell: There are actually many benefits, but not all compliance technology solutions are the same. So, each has different capabilities, tools, and offerings, and it’s understandable that firms may not know where to start.

Over the past couple of years, technology has transformed the needs and the ease of its users in the industry. Not only have compliance technology solutions become actually cost-effective, but it has also enhanced a firm’s ability to promptly detect and address compliance issues, and this really helps tremendously with mitigating and eliminating regulatory violations. And in turn that minimizes the cost associated with such violations.

CCO Buzz: Wow, you’re even selling me on this, Tina. Later this month, your article, “The Many Benefits of Managing Compliance Through Compliance Technology” will hit the inboxes of clients and readers of Core Compliance’s monthly newsletter, The Compliance Corner. In the article, you focus on the platform functions that not only can enhance a compliance program but also empower compliance officers and departments in the long term. Can you share a few of these functions with our listeners today?

Tina Mitchell: Of course. While finding the right compliance solution is an extensive, yet important, undertaking, we do believe it will help firms to be aware of some of the main functionalities that compliance technology can offer. For example, some benefits of having a compliance technology solution in place, include:

  • Staying abreast of the latest Securities Regulations. This is a must for Chief Compliance Officers, but it takes a lot of time. So having a compliance management system that provides an easy and convenient way for the CCO to receive real-time news updates, from the regulators, in one location, is imperative. These usually can be tailored to allow a CCO the ability to review only the information applicable to their firm’s business, which in turn allows them more time to function on important compliance tasks.
  • You can also maintain an electronic Compliance Calendar. Having a comprehensive calendar is the foundation of compliance success. By utilizing technology, a CCO can implement all required compliance duties into an electronic calendar, and it can track the required completion and filing dates, send automatic reminders via email, and house all the applicable documentation.
  • Then there’s the Code of Ethics Reporting. Most systems are set up to automate employee Code of Ethics compliance and they can be configured to receive employee personal trading and securities holding information through secure electronic feeds from their brokerage firms. This generally makes the reporting process much easier for employees and assists the CCO by performing reviews of the trading data to ensure employees’ compliance with the firm’s Code of Ethics requirements.

There are a few others that I go into detail about within the article, as well, which is posted on our website.

CCO Buzz: Listeners, in her article, Tina discusses areas and capabilities I didn’t even know were possible, but I could see how they could be advantages to any compliance program. Speaking of which, Tina, with all our discussion of Compliance Technology and the advantages they bring to the industry – do you have any platform recommendations for our listeners to look into?

Tina Mitchell: That’s actually a good question and in my article, I do provide names and contact information for a few vendors that provide these important capabilities and more, such as Orion Compliance ((previously BasisCode Compliance™) and Schwab Compliance Technologies, to name a few.

CCO Buzz: Well, it sounds like this is important for our listeners to read your article! Thank you for joining us, Tina. But before we go, I just wanted to ask if there was anything else you’d like to share with the listeners.

Tina Mitchell: Yes, actually just one thing. I believe having compliance technology in this regulatory environment is a must, but implementing compliance technology is a big undertaking. So, I want our listeners to know that Core Compliance consultants are very familiar with these systems, and we not only help our clients with initial setup, but we can provide ongoing assistance with the administration of compliance within the systems. If listeners have any further questions regarding compliance technology or would like assistance with identifying their ideal compliance technology solution for their firm and business model, please feel free to reach out to us at (619) 278.0020 or at corecls.com. Thank you!

CCO Buzz: Well that’s it for this week’s episode. If you’d like additional information, please check out our website at www.corecls.com. You can also follow us on Facebook, LinkedIn, or Twitter @CoreCls. Thank you, and we hope you tune in to next week’s episode of the CCO Buzz.



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