Skip to content

THE SEISMIC SPRING 2022 RELEASE IS HERE. Learn More

CHOOSE YOUR LANGUAGE

  • English
    • Enablement Cloud

      Meet the unified solution that’s igniting revenue growth for customer-facing teams.

      Learn More
    • PRODUCTS

      • Sales Content Management
      • Learning & Coaching
      • Buyer Engagement
      • Content Automation
      • Strategy & Planning
      • Enablement Intelligence
    • PLATFORM

      • Platform Overview
      • Integrations
    • What is Sales Enablement?

      New to sales enablement? No problem. Learn what it is and why it matters here.

      Learn More
    • USE CASES

      • Sales Enablement Teams
      • Sales Teams
      • Marketing Teams
    • INDUSTRIES

      • All Industries
      • Asset Management
      • Banking
      • Healthcare & Life Sciences
      • Technology
    • Read Their Stories

      Read how global customers from all different industries thrive with Seismic.

      Read Their Stories
    • CUSTOMER STORIES

      • Genesys
      • Deluxe
    • FOR OUR CUSTOMERS

      • Seismic University
      • Seismic Community
    • About Us

      Discover who we are, what we value, and how we work at Seismic.

      Learn More
    • ABOUT SEISMIC

      • Careers
      • Leadership
      • Diversity & Inclusion
      • Partners
      • Aftershock Store
      • Contact Us
    • NEWS

      • Newsroom
      • Analyst & 3rd Party Reports
      • Shift 2022
    • Sales Acceleration

      Explore best practices for onboarding, ramping, and upskilling your sellers.

      Learn More
    • WHAT'S NEW

      • Blog
      • Events & Webinars
    • COLLECTION HUBS

      • Resources Center
      • Enablement Explainers
      • AI-Guided Selling
      • Social Selling
      • Financial Services
      • Buyer Engagement
  • Get a Demo
Return to the Blog

Regulators Keep Compliance Issues Front and Center

In various communications and in a couple of different forums recently, industry regulators reminded firms that they need strong and ...

Seismic
Seismic
November 11, 2015

Compliance Rules Responsibility Legal Agreement Concept

In various communications and in a couple of different forums recently, industry regulators reminded firms that they need strong and effective compliance programs. Both the SEC and FINRA made it clear that problems lie ahead for firms that treat this function as anything less than a priority, or as something they can dish off to a third party and pretty much forget about.

The first warning flare came in the form of a National Exam Program Risk Alert issued earlier this week by the SEC’s Office of Compliance Inspections and Examinations.

The alert focused on the programs of investment management and advisory firms that had outsourced their compliance programs. These unaffiliated third parties include firms offering outsourced chief compliance officer (OCCO) services, as well as consultancies and law firms with specialized compliance practices.

Issues with Outsourcing
In roughly 20 of these cases, SEC examiners found problems with firms using OCCOs and other compliance consultants. The issues examiners found with these outside parties included the lack of a clear understanding of their clients’ business practices, incomplete access to their documents, and spotty communication with the firms’ principals.

In addition to detailing the problems, the alert included this bottom-line message: “Advisers with outsourced CCOs retain the responsibility for adopting and implementing an effective compliance program.” In other words, while firms may be able to outsource their compliance work, they don’t get to offload their liability.

FINRA: Priority Is Discipline, Not Fines
Although the Financial Industry Regulatory Authority (FINRA), the brokerage industry’s self-funded watchdog group, has issued its share of large fines, the regulator isn’t striving for ever-larger financial penalties. Instead, the organization’s main priority is on the “blocking and tackling” of enforcing its rules.

So said Russell Ryan, SVP and Deputy Chief of FINRA’s Department of Enforcement, in comments he made at the Securities Enforcement Forum last week in Washington, D.C.

According to Mr. Ryan, FINRA’s isn’t in the punishment business; they leave that to law enforcement. What the organization does focus on are fundamental rule violations, especially supervisory failures, sales of unsuitable products, and brokers whose outside business interests conflict with those of their clients. And FINRA is particularly aggressive when it comes to protecting elderly investors.

Even though its leaders are taking a positive tone and positioning the organization as a resource that can help firms get their compliance acts together, FINRA still has fangs and claws. Massive fines and the threat of major reputational damage stemming from an enforcement action remain squarely in FINRA’s arsenal.

Best Defense is a Good Offense
The obvious reality is that regulatory compliance for asset management and wealth advisory firms is growing more complex and therefore more challenging to manage. Whether it’s handled all in-house or through some form of outsourcing, regulators are making it clear that firms need pay more attention to their compliance programs than ever before.
The good news for firms is that great strides have been made with technologies that support the compliance function. One example is content automation solutions that enable firms to get the compliance language right in every piece of client-facing collateral.

By implementing these types of tools in support of a thorough and well-managed compliance program, firms can show regulators that they have the right compliance mindset, and that it’s a priority in their organizations. It’s a proactive step that can help keep them in regulators’ good graces.
New Call-to-action



  • asset management
  • compliance

Related articles

How to drive investment banking deals with sales enablement

Investment bankers can build better relationships and accelerate deals with the right enablement tools.
Read More: How to drive investment banking deals with sales enablement

Growth, innovation and opportunity on the horizon

Celebrating Seismic’s Series F funding round and what to expect from us next.
Read More: Growth, innovation and opportunity on the horizon

Accelerate your firm’s client engagement strategy

Relationships matter more than ever. Learn how leading firms are increasing client engagement.
Read More: Accelerate your firm’s client engagement strategy

If you made it this far, we must be striking a chord.

Get a Demo
Seismic
  • Product
  • Seismic Enablement Cloud™
  • Sales Content Management
  • Learning & Coaching
  • Buyer Engagement
  • Content Automation
  • Strategy & Planning
  • Enablement Intelligence
  • Solutions
  • Sales Enablement Teams
  • Sales Teams
  • Marketing Teams
  • Resources
  • Blog
  • Resources Center
  • Trending Topics
  • What is Sales Enablement?
  • What is AI-Guided Selling?
  • What is Social Selling?
  • Integrations
  • All Integrations
  • Google
  • Microsoft
  • Salesforce
  • COMPANY
  • Contact Us
  • Careers
ISO 27001 Certified by Schellman
  • © 2022 Seismic
  • Terms of Use
  • Privacy Policy
  • Follow us on Linkedin
  • Follow us on Instagram
  • Follow us on Twitter
  • Follow us on YouTube
  • Follow us on Facebook