NSCP Currents: May 2017 Special Reprint

Managing the Impact of High CCO Turnover in Financial Services Sector

By Carlos Guillen

In 2016 when search firm Russell  Reynolds  released  its study of the role of the corporate compliance officer in the financial services sector(1), the most alarming finding was that there was a 40% turnover rate among CCOs  over a two-year period. This does not come  as a surprise to those of us in the compliance world.  We  have been dealing with  the  growing  impact  of  CCO turnover for some  time  as  asset  management  firms, banks and  insurance  companies  have  had  to  grapple with the increasing complexity of compliance regulation and  the  dearth  of  qualified CCOs. Read the full article here.

NSCP Currents May 2017 Special Reprint

Managing the Impact of High CCO Turnover in Financial Services Sector

By Carlos Guillen

In 2016 when search firm Russell  Reynolds  released  its study of the role of the corporate compliance officer in the financial services sector(1), the most alarming finding was that there was a 40% turnover rate among CCOs  over a two-year period. This does not come  as a surprise to those of us in the compliance world.  We  have been dealing with  the  growing  impact  of  CCO turnover for some  time  as  asset  management  firms, banks and  insurance  companies  have  had  to  grapple with the increasing complexity of compliance regulation and  the  dearth  of  qualified CCOs. Read the full article here.

The Morning Risk Report: Compliance Services Firm Form Council to Promote Best Practices

Four compliance services are banding together with a compliance software company and a cybersecurity firm to form an advisory council to promote best practices among compliance industry consultants. The BasisCode Advisory Council will provide independent guidance and industry insights that reflect ongoing changes in the regulatory environment, incorporate feedback from member firms’ clients and offer a way for companies to tap into the expertise of more consultant firms without having to have different technology platforms for each one… read the entire WSJ article

Leading Compliance Consulting Firms Join BasisCode Advisory Council

5 Leading Compliance Consulting Firms Join BasisCode Advisory Council as charter members

ATLANTA, January 3, 2017 – BasisCode Compliance LLC (www.basiscode.com), a leading provider of regulatory compliance software solutions, has formed an advisory council of leading compliance consulting firms to provide industry input in the continuing development of its award-winning compliance software platform.

The BasisCode Advisory Council consists of four prominent compliance consulting firms – Alaric Compliance Services, Cipperman Compliance Services, Hardin Compliance Consulting, and SEC Compliance Consultants – as well as a leading cyber security specialist – BW Cyber Services. The addition of cyber security expertise to the council signals the growing importance of incorporating cyber security into next generation solutions.

The advisory council will provide independent guidance and industry insights that reflect ongoing changes in the regulatory environment and the members’ client feedback. The council’s input is designed to ensure the Compliance Consultant Manager continues to serve the evolving needs of industry consultants and their clients allowing them to focus on their core offerings.

“Simply put, the BasisCode Advisory Council will help us better serve our consulting clients and their clients,” said Carlos Guillen, BasisCode Compliance president and CEO.  “By incorporating the group’s expertise into our platform, we hope to ensure that all compliance and regulatory consultants have the tools they need to do their job more effectively.”

“We bring to the Council our unique position as a longstanding CCO outsourcing leader whose consultants have accumulated decades of hands-on experience and insight,” said Alaric Compliance Services CEO Guy Talarico.  “Complementing our expertise with time-tested technology is ultimately a win for our clients, who can reduce their reliance on manual processes without us having to build capabilities from scratch.”

“In the end, it’s all about making it easier for the industry to manage an effective compliance program,” said Todd Cipperman, Cipperman Compliance Services. “By participating in the BasisCode Advisory Council, we can share best practices and experiences that will ensure that our clients are prepared to handle changing regulatory challenges.”

“By reducing the use of spreadsheets, email, paper and partial solutions, our clients know that we are providing our services in the most efficient, secure, and cost-effective manner,” said Jaqueline M. Hummel, Hardin Compliance Consulting. “The goal is to determine what our clients need and applying modern technology to provide an optimal solution to managing compliance programs. Working with a cyber-security expert will help us address one of the highest – and least understood – risks facing the industry.”

“While technology itself will never replace the expertise and judgement provided by a compliance consultant, technology is absolutely required in order to provide an effective and scalable compliance offering to clients” said John Lukan, of SEC Compliance Consultants, Inc.  “While we explored building our own proprietary technology, we realized that an enterprise solution requires specific expertise that is difficult and expensive to create and maintain, especially in light of the ongoing business continuity and security requirements. After extensive research, we found BasisCode offered the flexibility and enhanced functionality we were seeking.  We are excited to be part of this new advisory group and able to contribute to its future development.”

Michael Brice, founder and CEO of BW Cyber Services said, “By participating in the BasisCode Advisory Council, we can share cyber best practices and industry experiences that will ensure that clients are best prepared to handle changing regulatory challenges in a pragmatic manner that also provide real-world, operational benefits.”

Initial members of the forum will serve 18 to 24 months.

About BasisCode

BasisCode Compliance LLC (www.basiscode.com), headquartered in Atlanta and founded in 2011, is a leading provider of regulatory compliance software solutions which help manage the risk lifecycle from identification to resolution. From core compliance to personal trading and insider trading, each BasisCode software solution is available as a stand-alone product or offered as part of an integrated package.  The company’s hallmark, audit-ready capability is available in all BasisCode solutions and helps firms maintain a culture of compliance.

 

About Alaric Compliance Services

With more than 275 years of cumulative financial services experience, we have completed more than 100 exams as CCOs, and 500+ reviews and exams as regulators and advisors.  Our seasoned consultants bring a fresh perspective, time-tested technologies and an unsurpassed wealth of CCO experience to help clients anticipate and mitigate a range of regulatory, compliance and cyber-security risks.  With offices in New York and Boston and a diversified client base spanning start-ups to mature businesses with more than $160 billion in assets under management, we have been meeting our clients’ compliance needs since 2004.  For more information, visit www.alariccompliance.com.

About Cipperman Compliance Services

CCS helps registered funds and money managers create a culture of compliance.  CCS leverages the experience of a multi-disciplinary team and takes full accountability for its advice and services. For more information, visit www.cipperman.com.

About Hardin Compliance

Hardin Compliance Consulting is a full-service compliance consulting firm, offering expert regulatory compliance services and solutions to investment advisers, broker-dealers, private funds and investment companies. HCC has the relevant experience to help clients build and maintain quality personalized compliance programs based on strong processes and a culture of compliance. For more information about Hardin Compliance, visit www.hardincompliance.com.

About SEC Compliance Consultants

Since 2003, our team has been providing expert compliance consulting services to the financial services industry.  With broad experiences and skill-sets, our consultants quickly gain a deep understanding of a client’s business, workflows, and control environment, which allows us to help clients manage and mitigate compliance risk and conflicts of interest.   Our client base includes some of the most respected names in the financial services industry and ranges from large international firms to small firms with only a few key people. Our satisfied clients include advisers, institutional investors, directors, private fund advisers, investment companies, and broker-dealers. Our service offering includes compliance consulting, mock regulatory exams, expert witness services and selective, outsourced CCO services. For more information, visit www.seccc.com.

About BW Cyber Services

At BW Cyber Services, our goal is to help our clients quickly become cyber compliant, cyber knowledgeable, and cyber protected.  In this technologically complex world, criminals, nation states, “hacktivists”, and even tech savvy adolescents are continuously searching for weaknesses or vulnerabilities that will enable them to prey upon your business.  To help mitigate these risks of attack and address your cyber compliance needs, BW Cyber Services provides turn-key cyber audit and cyber regulatory compliance services tailored to meet both the compliance and real-world security needs of our clients – which include NFA and SEC registrants, as well as family offices.  Our consultants are not only cyber experts – they also possess decades of hands-on financial industry expertise.  It is this expertise that allows us to provide reasonably priced, pragmatic solutions that will benefit your business well beyond technology implementation or administrative compliance. For more information, visit www.bwcyberservices.com.

Cipperman Compliance Services Implements BasisCode Compliance Software Platform

WAYNE, Pa and ATLANTA, November 15, 2016 – Cipperman Compliance Services LLC (www.cipperman.com), a leading provider of regulatory compliance services for investment advisers, registered and private funds, broker-dealers and money managers that collectively manage more than $40 billion in assets, is implementing BasisCode Compliance LLC’s software platform to improve compliance management for its global clients.

BasisCode Compliance is the industry’s most comprehensive software that improves compliance management for financial firms, compliance consultants, law firms and other service providers.  The software simplifies and centralizes compliance management, ranging from compliance testing and risk assessment to trading surveillance, insider trading and staff certifications. The rules-based engine makes it easy for users to modify workflow logic throughout the compliance management lifecycle.

“In the financial services and investment management industries, building a culture of compliance requires the implementation of effective compliance technologies by the best compliance professionals who can assess, interpret and react to the data,” said Todd Cipperman, founding principal of Cipperman Compliance.  “Our decision to partner with BasisCode as the best-of-breed compliance management software will ensure better regulatory outcomes and allow our expert team of compliance professionals to focus their time and effort on making judgments and providing advice to our rapidly expanding client base.”

Compliance officers face greater scrutiny than ever, with regulators naming and prosecuting them for not only malfeasance but increasingly for negligence as well.  Compliance outsourcing has become commonplace as regulatory pressures compel registrants to improve compliance processes and procedures to reduce firm and client risk.  Additionally, regulators have indicated that they might require third-party compliance reviews of regulated entities within the coming year.

With registrants facing this combination of pressures, outsourced providers like Cipperman Compliance are working to quickly scale their infrastructures to support greater processing volumes effectively and efficiently.

BasisCode Compliance centralizes the industry’s broadest range of functionality within a single platform, increasing compliance management processing visibility.  The BasisCode Dashboard displays a consolidated inventory of a firm’s program while the BasisCode Portal engages consultants, supervisors as well as non-supervisory staff in maintaining a culture of compliance.

“Our innovative cloud-based platform, and our latest Insider Trading ManagerTM software, gives registrants and consultants more powerful tools to reduce compliance risk while enhancing the quality of their compliance programs,” said BasisCode Compliance President and CEO Carlos Guillen.  “This partnership with Cipperman Compliance also validates our leadership as the industry’s most extensive, integrated and advanced compliance management software available.”

About Cipperman Compliance Services LLC

Cipperman Compliance Services is a leading provider of holistic third party compliance services to the investment management industry.  CCS is one of the industry’s leading providers of regulatory compliance services for both registered advisers and funds. CSS offers a variety of services, including providing a designated CCO with support staff and program management, for a full range of clients who, combined, manage more than $40 billion in assets. CCS provides the expertise that ensures a quality overall compliance experience.  Given the visibility of regulatory oversight in today’s environment, Cipperman’s position as an independent partner is extremely valuable to fund sponsors and investment managers.  For more information, visit www.cipperman.com.

 

About BasisCode

BasisCode Compliance LLC (www.basiscode.com), headquartered in Atlanta and founded in 2011, is a leading provider of regulatory compliance software solutions which help manage the risk lifecycle from identification to resolution. From core compliance to personal trading and insider trading, each BasisCode software solution is available as a stand-alone product or offered as part of an integrated package.  The company’s hallmark, audit-ready capability is available in all BasisCode solutions and helps firms maintain a culture of compliance.

# # #

Insider Trading Manager and BasisCode Compliance are trademarks of BasisCode Compliance LLC. All other tradenames are the property of their respective owners.

wealth-management

New SEC Rules Increase Scrutiny of Outside Compliance Chiefs

The new SEC rules underscore the importance of selecting a qualified chief compliance officer.

By Carlos Guillen

With the Securities and Exchange Commission announcing adoption of Form ADV amendments proposed last year, regulated entities must now report if they outsource their chief compliance officer, and specify the name and tax identification for that individual.

The goal, according to the agency, is to enhance monitoring and regulation of the asset management industry, and improve the agency’s ability to assess potential risk. Firms must file newly amended Form ADVs under the requirement with the first amendment filed after October 1, 2017.

Explaining the rule, the commission noted its staff “has observed a wide spectrum of both quality and effectiveness of outsourced chief compliance officers and firms.” Advisors are already required to report on their Form ADV the names and addresses of independent public accountants that perform audits, surprise examinations and internal control reviews. The broadened amendment underscores the importance to regulators of ensuring the quality of a firm’s third party service providers.

Read the entire article published originally on Wealth Management .com at   http://www.wealthmanagement.com/regulation-compliance/new-sec-rules-increase-scrutiny-outside-compliance-chiefs ]

 

Carlos Guillen is the president, CEO and founder of BasisCode Compliance.

BasisCode Launches First Comprehensive Insider Trading Software Solution

Insider Trading Manager Detects Suspicious Trades by Tracking and
Analyzing Trading through Pre-Programmed Filters;

Integrates into Compliance Work Flow and Minimizes “False Positives”

ATLANTA, October 11, 2016 – The first comprehensive insider trading software, which tracks and analyzes trading in real-time and detects suspicious trades, has been introduced by BasisCode Compliance LLC (www.basiscode.com), a leading provider of regulatory compliance software solutions.

Insider Trading Manager™ addresses a major and prevalent risk faced by financial services firms today in terms of reputational damage and even survival. The software provides a complete work flow analysis totally integrated into a firm’s compliance monitoring system.

“Unlike the limited number of insider trading modules available today which are all event-driven and generate huge numbers of false positives,” said Carlos Guillen, president and chief executive officer, BasisCode, “Insider Trading Manager is not only a more effective monitoring system but also provides a set of productivity tools that vastly improves the efficiency and productivity of insider trading surveillance.”

As an integral part of a firm’s compliance monitoring system, Insider Trading Manager monitors all of a firm’s trading activity – for its clients and its employees’ accounts. Monitoring is conducted on an ongoing basis and is not activated solely on the basis of a material event.

The software enables firms to detect the misuse of material non-public information by identifying potentially illegal transactions using patent-pending filtering mechanisms designed to reduce the probability of false positives and enhance the accuracy of items that warrant review and includes a complete workflow and audit trail. The process saves time, reduces risk and provides for more meaningful analysis that can be applied to both firm and employee transactions. The improved efficiency allows users to expand their oversight to a broader range of activities while providing increased risk management assurance.

“Insider Trading Manager is a vast improvement over the insider trading surveillance systems in use today which review pre- and post-event trading records only after a key event takes place,” said Guillen. “This requires an enormous effort in time and financial resources to sift through thousands of trading records to identify what we call ‘one needle in a haystack.’ With Insider Trading Manager, an investigation or review is triggered only when suspicious trading is detected by the system’s ongoing monitoring of trading, and then a news search is initiated to determine whether there is any connection. The time and paperwork savings that result from the software are at least equal to the cost of one or two (or more) full-time employees equivalent.”
Prospective users of Insider Trading Manager include financial services and investment management firms, publicly-traded companies, law and accounting firms, boards of directors and consulting firms. The cloud-based software solution is available on a standalone basis or as part of an integrated suite where it can be used in combination with the BasisCode ComplianceTM and/or BasisCode Personal Trade Manager, both part of the company’s compliance suite of products.

BasisCode’s management team has decades of technology, financial and compliance expertise in designing, developing and managing enterprise compliance systems for a broad spectrum of organizations, from small asset managers to large institutional investors.
Insider Trading Manager will be shown for the first time at the upcoming National Society of Compliance Professionals (NSCP) National Conference in Washington, D.C. being held at the Omni Shoreham Hotel from October 17 to 19, 2016. BasisCode will be providing demonstrations at table #6. For more information about Insider Trading Manager, contact or call sales at 678-819-1991 extension 104.

About BasisCode

BasisCode Compliance LLC (www.basiscode.com), headquartered in Atlanta and founded in 2011, is a leading provider of regulatory compliance software solutions which help manage the risk lifecycle from identification to resolution. From core compliance to personal trading and insider trading, each BasisCode software solution is available as a stand-alone product or offered as part of an integrated package. The company’s hallmark, audit-ready capability is available in all BasisCode solutions and helps firms maintain a culture of compliance.

# # #
Insider Trading Manager and BasisCode Compliance are trademarks of BasisCode Compliance LLC. All other tradenames are the property of their respective owners.