Regulatory Compliance E-newsletter - 2014April
Posted On 4/1/2014 8:00:00 AM
Feature of the Month
NRS ComplianceGuardian™ Calendar and Task List
Right from Guardian’s home page, a dashboard of useful compliance tools are available. NRS ComplianceGuardian is a complete on-line and interactive solution for managing your compliance program whether you’re an Investment Adviser, Broker-Dealer or Private Fund Firm. This easy-to-use online system is filled with information from NRS’s expert compliance consultants, it will help you make compliance a part of your day-to-day business.
Everything from email alerts on timely compliance issues to guides on important compliance topics like surviving an SEC audit and anti-corruption practices. ComplianceGuardian’s content is updated on a quarterly basis to ensure that you can keep your compliance processes current.
Compliance Calendar and Task List
By completing a simple questionnaire, not only do the policies and procedures begin to be tailored for the firm, but the tool creates a customized compliance calendar and compliance task list that is synchronized with the firm’s policies and procedures. The automated tasks close the gap between what the firm policies are and what the firm does. NRS Consultants have provided guidance on what each task should entail for review purposes and the firm has the ability to add their own specific tasks. Assign the tasks to other ComplianceGuardian users and have the system send automatic emails and reminder emails.
Put the industry standard to the test and register now for your 15 day trial.
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Automate your Rep and Operations Staff Registrations Management
Regulators are increasingly targeting the proper disclosures and registration updates during their examinations of firms. As the burden of registration management grows, while budgets largely stay the same, the case for automation of registration management increasingly makes sense.
The ComplianceMAX Rep Insight Module allows you to automate registration management:
- Collect, review and track rep registration licensing data in a single centralized database
- Interact with the workflow based platform to perform tasks specific to your role
- Easily manage and maintain your branch and associated person hierarchy
- Submit Form U4/U5/NRF filings to FINRA’s CRD via the Web EFT portal leaving a supervisory audit trail of tracked data changes
- Review Outside Business Activity requests and submit approved changes to FINRA
- Monitor, report and alert users on CE and Exam windows
- Export User, Hierarchy and CRD data for use in commissioning and other systems
Register for a ComplianceMAX Demo today or contact us for more information.
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Meet the challenges of a demanding regulatory environment
NRS offers both the Investment Adviser Core Compliance Program and the Investment Adviser Certified Compliance Professional (IACCP®) Program in addition to numerous individual online and onsite courses and customized training for investment adviser and broker-dealer firms of all sizes.
One of the best ways to help ensure that your firm is prepared to adapt to these current regulatory challenges and more changes down the pike is to build and support a knowledgeable and competent compliance staff with quality compliance education.
Whether your firm is newly registered or a seasoned entity, the suite of NRS educational choices, designed and delivered by industry experts, can help you and your firm expand regulatory compliance know-how and develop necessary risk management skills. Our onsite and online education options make it convenient for compliance officers to:
- Stay up to date with the latest industry news and compliance priorities
- Prepare for and address regulatory changes to establish strong, effective and efficient compliance programs and minimize risk
- Spot examination and enforcement trends before they reach your doorstep
- Gain experience in transforming rules and regulations into meaningful compliance procedures
- Demonstrate and understand how and which federal and state securities regulatory requirements shape your firm’s compliance program
- Develop the judgment needed to apply appropriate regulations and rules to assure complete coverage of compliance tasks
- Interact with other compliance professionals to build a network of resources
Visit us to find out how NRS Education can help you meet the regulatory demands of today and tomorrow.
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2014 FINRA Regulatory and Examination Priorities
Each year, FINRA publishes its Regulatory and Examination Priorities to highlight areas which focus on their current assessment of the key investor protection and market integrity issues on which they will focus in the coming year. For 2014 the regulatory body is citing, among others:
- Suitability and Complex Products - Compliance Tip: The best defense against a regulatory finding in this area is education, education, education! In order to fully comply with FINRA Rule 2111, ensuring the suitability of a recommendation, a registered rep must have a full understanding of complex or high-yield products. They must be aware of all potential failures in order to adequately explain the risk-versus-return profiles. They need to be able to spot disconnects between client expectations and risk tolerances. The most direct route to customer complaints and regulatory findings is to have registered reps offering products about which they are uncertain and/or unclear.
- Cyber Security and Data Integrity - Compliance Tip: As on-line and mobile access to customer account information becomes increasingly necessary from a customer-service perspective, the safety and integrity of sensitive customer data has to be a top priority, requiring substantial and robust safeguards to protect the data. Firms have to ensure they have sufficient resources dedicated to ensuring full integrity of data storage and the controls required. Firms must be certain they are not vulnerable to operational disruption of, and/or unauthorized access to its data.
- Insider Trading - Compliance Tip: As insider trading continues to be a top regulatory priority for FINRA, the SEC and federal criminal law enforcement, firms must be vigilant in safeguarding material, non-public information, periodically assessing information barriers and risk controls in effect, as well as monitoring the personal securities transactions of its staff.
- Anti-Money Laundering (“AML”) Programs - Compliance Tip: Firms with higher-risk business models due to their clients, products and service mix or location in which they operate face increased AML scrutiny. Insufficient due diligence concerning risks associated with foreign affiliates and the business they transact through the FINRA member broker-dealer can lead to a lack of knowledge as to who or how many underlying customers may be involved. Even for less high risk areas, the fact that the client “is a neighbor of” or is someone “I’ve known all my life” does not absolve the firm for undertaking sufficient background checks and obtaining legitimate identification.
NRS Consultants are available to review your applicable policies and procedures to ensure they conform to regulatory requirements and industry best practices and to offer guidance for their improvement, if necessary.
To find out how NRS can help you contact us today.
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