Ensure your Compliance Program is in order with a Mock SEC Review
Avoid Fines and Regulatory Suspensions
A Chief Compliance Officer (“CCO”) can’t go it alone. They need the support from the executives at a firm to adequately conduct their job. Too often we see CCOs tasked with multiple roles and responsibilities leaving only a minimal amount of time for compliance. A common rule of thumb is that at least 5% of a firm’s total revenue should be spent on compliance services and infrastructure.
A CCO can’t be expected to create an effective compliance program that would pass SEC review, protect the firm’s clients and firm’s reputation without the proper resources. The SEC expects that the CCO will have extensive knowledge of the rules and regulations, and that compliance activities will be fully resourced. Requests for additional budget, time and resources should not go unanswered by senior management.
The Fines are Real
On June 25, 2015:
- The Securities and Exchange Commission has suspended for 12 months the former president of a firm from acting in a supervisory capacity after he consistently ignored pleas from the firm’s chief compliance officer for help.
- Two of its principals were also censured and fined $285,000 for compliance failures.
On June 16, 2015:
- The Securities and Exchange Commission announced fraud charges against a Washington-based firm’s former president for stealing funds from current and former professional athletes.
- The firm and its CCO separately agreed to settle charges that they were responsible for compliance failures and other violations that lead to the president’s ability to steal the client funds.
NRS Can Help
We have found that one of the most effective ways to prove the need for resources is by starting off with a Mock SEC review. This practice review and its results can shed light on possible weaknesses or provide the peace of mind knowing that the firm has a sound compliance program.
By partnering with us, firms put experienced NRS Consultants to work so they can maximize resources to help ensure compliance success. Hundreds of firms have engaged us to deliver a customized compliance plan designed to fulfill their regulatory obligations while, at the same time, lowering costs and minimizing risk. In a recent article by Investment News, a financial adviser had NRS Consultants conduct a mock review and stated that "it was helpful to get an idea of what the SEC is looking for" and they "made a number of positive changes" for the compliance program as a result.
You too can benefit from highly skilled professionals with an extensive history of consulting engagements that offer a wealth of individually designed services to meet your specific needs. Engaging with NRS will allow you to, maximize your resources, outsource your compliance program and benefit from highly skilled professionals with an extensive history of consulting engagements. Typical engagements can include:
- Compliance Program Review or Risk Assessment – An on-site review of compliance practices designed to identify major regulatory deficiencies and prepare for a future regulatory examination by applying industry best practices to address issues.
- SEC Mock Review - Our mock review will evaluate the ability and preparedness of your firm’s key personnel, processes and records to determine if your firm’s commitment to compliance is enough to ensure a successful outcome when next examined.
- Advertising and Marketing Review – NRS Consultants can review and make recommendations with regards to any advertising and marketing materials used by your firm so that the materials are consistent with SEC rules and requirements
- E-mail Monitoring – NRS can monitor and review your e-mail communications using your systems to ensure compliance with regulations and your policies.
- Form ADV Services - Delegate the tedious task of writing or maintaining your Form ADV to a team that has drafted thousands of Form ADVs and has years of experience in writing “plain English” disclosures that meet SEC approval.
- Routine or Ad-hoc Compliance Support - As your partner your dedicated Consultant is available to address any concerns as they arise or can visit your offices regularly to help you complete compliance tasks.
- Compliance Education – NRS offers several compliance education programs that can be bundled into a comprehensive compliance package.
- Compliance Technology solutions- NRS Technology solutions are tailored to meet the specific compliance needs of financial services firms. NRS provides turnkey solutions that can be used as compliance portals for your entire firm while streamlining workflow, tracking adherence, lowering costs and maximizing compliance.
Let the compliance experts help you ensure your compliance program is ready to withstand heightened scrutiny from clients and regulators. Schedule a Consultation today.