Learn Valuable Lessons of Audit-Readiness with Our Exclusive eBook

What does it take to be Audit-Ready? The compliance experts at BasisCode know the answers — and we are sharing it with you in a new eBook “A Guide to Audit-Readiness.”

When the SEC calls your number, can you easily extract information and deliver the evidence? Or will your firm share in the common deficiencies and weaknesses that the regulators find on a regular basis?

Tapping into decades of first-hand compliance expertise, this eBook is packed with easy-to-digest information that’s crucial to understanding what problems, processes and solutions are required for best practices compliance.

Following are top problems detailed in the BasisCode eBook, “A Guide to Audit-Readiness.”

Common Deficiencies and Compliance Program Weaknesses

Through its Risk Alerts, the SEC actively communicates exam observations. In working directly with firms, BasisCode assists firms of all sizes with overcoming these common program deficiencies and weaknesses:

Inadequate Compliance Resources

Failure to Tailor and Implement Procedures

Failure to Conduct and Adequately Document Annual Review

Failure to Supervise Adequately

Conflicts Resulting from Wearing Multiple Hats

The SEC has been vocal in its concerns on the role of compliance, the impact of exam preparedness and firms’ inadequacies. Two major aspects of compliance deficiencies that have been cited by SEC leadership in the past three years are:

Chief Compliance Officers Not Empowered

In a November 2020 speech delivered by SEC Commissioner Peter Driscoll, Director of the Office of Compliance Inspections and Exams (OCIE, now EXAMS), Mr. Driscoll talked about three key areas in which firms leave the compliance program vulnerable. 

Understand the ways in which CCOs can become empowered sufficiently in our guide.

Poor Impressions, Incomplete Recordkeeping

SEC Commissioner Hester Peirce described in an October 2018 speech three specific areas in which firms fail to satisfy SEC requests and rules.  Review those and glean insights into the SEC’s perspective in our Audit-Readiness eBook.

How to Become Audit-Ready

Planning and implementing best practices compliance is not a one-time action.  It’s a perennial and fluid process with policies and procedures, ongoing assessment and adjustment of existing systems, incorporating technology and training to produce records and evidence.

Download “A Guide to Audit-Readiness” to:

Have a firm understanding of compliance programs’ problems, deficiencies and weaknesses cited by the SEC.

Learn the specific solutions that can correct deficiencies and weaknesses and improve compliance preparation.

Get your 4-part Audit-Ready Checklist – a framework for best practices compliance programs.

Mastering the Art of Compliance

Compliance teams walk a tightrope … striking the right balance between what is required to effectively mitigate risk and what’s overkill that will unnecessarily frustrate employees can be challenging.

A balancing act occurs when choosing between a simple check-the-box technology software and an integrated compliance management solution. The paint-by-numbers option might be a feel-good solution but one that doesn’t adequately protect the firm.

Best practices compliance is part science and, yes, part art.  Science in that there are certain mandated activities (check the box) that firms must complete or regulations to which they must adhere.

However, mastering compliance requires an artist’s outlook. Beauty can be found in a practical, yet unique solution tailored to a firm’s needs; one that ensures a fluid and perennial program with all the tools to scale and tackle any challenge.

The Compliance Canvas

Compliance officers need to understand the difference between painting-by-numbers to complete the requirements for a stagnant program, and the artist’s mindset of creating a dynamic “living” compliance program.

An artist requires both talent and the appropriate tools to create a work of art. Trying to perform all the necessary functions required by compliance professionals with outdated, counterproductive systems will yield results that are subpar at best – and catastrophic at worst.

The BasisCode compliance management platform is fully integrated and continually updated with new features and functions to improve the users’ experience.

Our differentiator is in the approach – the integration of each functional process provides the scientific structure and canvas for the artist to fluidly create.

The Artists’ Tools

The team behind BasisCode understands the calamitous implications of relying on multiple, non-integrated software platforms and physical systems.

When studying the differences in approach taken by technology platforms, it becomes evident that an integrated solution offers both simplicity of use and far better analysis. The following examples contrast process and deliverables.

BasisCode helps firms master compliance with intuitive software that simplifies compliance management, provides a unified system for monitoring, auditing, and reporting, and ensures an organizational culture of compliance excellence.

Artists are only as good as their tools, talent, and the effort they put into their craft. A paint by numbers approach may suffice for some. For the conscientious artist, any work of art program would be tailored to each organization with a thoughtfulness in design, tools, experience, and result.

To learn more about the Art of Compliance, register now for a live demo of the BasisCode Compliance™ platform and Q+A. June 15th, 1:00pm – 2:00pm EDT.

Why BasisCode? The Origins of Audit-Readiness

Why do simple compliance tasks often prove to be the most difficult to accomplish?

That was the question an experienced team of compliance professionals and asset managers asked over a decade ago when they were gathering necessary records to complete a regulatory Request for Information (RFI).

The team realized quickly that, while they had all the information they needed, it would take a significant amount of time to produce it in a timely fashion and a format that regulators wanted. The industry was continuing to rely on an outdated, non-integrated system of spreadsheets, email and paper.

“The AHA moment for us happened during the request for information,” says Carlos Guillen, President and CEO. “There were 40 people in one room trying to fulfill the RFI and we knew it going to be a costly, time-consuming process that would prevent all of us from concentrating on our primary job functions.”

Financial compliance regulations were continuing to become more exacting to protect investors, but the systems used to adhere to them were stagnant or non-existent.  The future BasisCode team challenged themselves to design a software system for compliance management that would simplify processes, automate information gathering and minimize audit preparation time. 

First Client Remains One Today

What ultimately became BasisCode’s first client had spent more than a year trying to develop a workflow for organizing and maintaining their documentation, but the solution was expensive and cumbersome. Solving this was truly the team’s motivation for founding BasisCode.

Recalls Guillen: “It was much more expensive to maintain it internally, develop it and continue enhancing it, so when we were able to provide them a solution, they were very pleased and they’re still a client today.”

BasisCode developed an intuitive software platform that could guard assets, reduce risk and make firms both large and small audit-ready at all times. They began by reverse engineering a Complete Governance, Risk and Compliance (GRC) solution and used that as the basis for their software platform.

The result was a cloud-based, audit-ready compliance software platform that performs all of the necessary functions of compliance management from initial identification to resolution.

The Impact on Compliance Professionals

BasisCode’s core team has been together now for about 20-25 years developing solutions for financial services that range from risk management to portfolio management to compliance. Thanks to its integrated platform, compliance teams no longer have to rely on outdated systems or use multiple solutions from multiple vendors.

Compliance professionals can perform their day-to-day work knowing that BasisCode software is preparing the audit documentation in the background — tasks are being executed effectively, the evidence of a particular task is directly linked to the procedures that followed, and that the data can be extracted at any point of time.

“Our software platform and the continuous updates and enhancements we’ve made over the decade efficiently and effectively simplifies compliance and becomes the technology team for the compliance officers, professionals and firms.” adds Guillen.

The View Forward

Compliance officers can feel comfortable, even after the compliance officer has left that firm, knowing that the data will reside in a controlled environment, and it will be readily accessible when they need it.

As compliance requirements continuously evolve, BasisCode Compliance’s all-in-one platform enables compliance professionals to set up new tasks, create new workflows, monitor new risks and have it in a way that easy to extract.

The impact of being audit-ready is enabling management teams to focus on the bigger issues that impact the success and growth of their firms.

Register today for a live demo of the BasisCode Compliance platform on June 15, 2021 at 1p ET.  Learn how BasisCode provides the technical backbone for an always audit-ready, best practice driven compliance program.

BasisCode Compliance LLC Announces New Platform Release with Filer Module, Multi-Language Support and Notes Enhancement

ATLANTA, GEORGIA, USA, April 1, 2021 /EINPresswire.com/ —

The latest BasisCode Compliance™ platform release launches a Filer Module, Multi-Lingual Support in the launch portal, and a new Notes feature to further enhance the robust compliance technology management platform.

“These enhancements are a welcome addition for clients across the BasisCode platform,” says Carlos Guillen, President and CEO. “Each innovation is designed to make the job of compliance officers and consultants easier, more accurate and efficient, and audit-ready.”


BasisCode Compliance Announces Keynote Speaker and Agenda for 2021 Compliance Consortium

Cipperman Compliance Services, MGL Consulting and Bates Group all partner as Platinum Sponsors of the 1st BasisCode Compliance Consortium on December 6-7, 2021

ATLANTA, GEORGIA, USA, March 22, 2021 /EINPresswire.com/ — BasisCode Compliance™ announced the Keynote Speaker and preliminary agenda for the BasisCode Compliance Consortium being held December 6-7, 2021, at the TradeWinds Island Resort in St Pete Beach, FL.

“As the emphasis and focus on Cybersecurity concerns remains top of mind for our clients, we’re excited to have Brian Hahn, ethical hacker and President of MTradecraft, join us as the Keynote Speaker of the event,” says Carlos Guillen, CEO of BasisCode Compliance, LLC.

5 Ways BasisCode Keeps Your Data Safe + Secure

With BasisCode as your compliance management system, you never have to worry about the security of your data.

We take numerous measures to maintain security against outside parties’ unwanted attempts to access your data, as well as protect your privacy from those who do not have your consent to access your information.


Here are 5 ways that BasisCode keeps your data safe and secure:


Don’t Let Unimplemented Changes Place Your Compliance Program at Risk

For financial organizations, data security is king. Given the amount of secure information that comes across the computers and desks of everyone from investment advisors to private equity firms, both clients and regulatory agencies expect financial professionals to handle the information wisely and securely.

When most of the business world shifted – nearly overnight – to remote work in the spring of 2020, those in the financial sector seemingly took all the sensitive information they process daily home with them, opening pandora’s box.

This abrupt change created serious data privacy and security risks due to the lack of regular oversight, the inability to follow normal protocols, sloppy record-keeping and unintentional insecure data practices – driving up risk for the firm.

Updating Compliance Standards

In guidance issued last summer, the SEC put the industry on notice that enforcement and examinations will be stringent due to the new “operational, technological, commercial and other challenges and issues” faced by many SEC registrants, which it noted have created “important regulatory and compliance questions and considerations.”

The SEC Office of Compliance Inspections and Examinations recommended the following:

  1. Implementing additional steps to validate the identity of the investor and the authenticity of disbursement instructions.
  2. Remote oversight of trading, including reviews of affiliated, cross, and aberrational trading, particularly in high volume investments.
  3. Modified or enhanced security and support for facilities and remote sites to secure communications or transactions occurring outside of the firms’ systems.

Many firms immediately worked to update their policies and procedures for remote employees, reevaluating their supervisory priorities and reporting requirements, but lacked the technological infrastructure and know-how to properly translate their in-office security measures to remote settings.

Benefits of Compliance Technology

Without the right technology in place, logins, financial data and more can potentially be exposed both in-office and during remote work, with a continual risk for fraud and conflicts of interest. The ever-evolving response to the pandemic has driven up the need for compliance technology as a vital partner in the task of staying compliant. As Tom C.W. Lin notes in The Temple 10-Q, “The key to addressing many of the challenges posed by adapting old practices and operating under new rules during this unprecedented pandemic lies in technology.”

It’s important for firms to take a step back and consider if technology can streamline their approach to dealing with shifting compliance priorities. This isn’t always easy to execute – one survey flags corporate governance as key to deploying compliance technology correctly. When evaluating firms should consider:

  • Budget limitations
  • Existing IT infrastructure
  • Buy-in by boards and risk and compliance functions

A Comprehensive Solution

The financial compliance management software offered by BasisCode Compliance enables firms to automate processes securely, dramatically reducing the risks inherent to complicated paper processes. The software was built specifically for those in the financial services sector, so the platform intuitively addresses the many risks unique to the field, like handling employee conflict of interest and Code of Ethics administration.

With an expert tech solution guiding risk and compliance, financial firms are on stronger footing to stay within protocol, satisfying both regulatory agencies and clients—and supporting ongoing growth.  

Cybersecurity in 2021: Test Your System to Protect Vital Data

Cybersecurity is a significant global threat, particularly for the financial sector where essential data must be protected at all costs. A major cyberattack on the U.S. government in late 2020 potentially exposed the sensitive data of dozens of agencies. This was a stark reminder that no business or government entity is immune to highly consequential cybersecurity breaches that have increased in sophistication and frequency for years.

BasisCode welcomes having our clients do their own security penetration tests on our systems, so they can be assured that we’re the best possible partner committed to the highest level of data security.  While we’re obtaining our own security testing, we also recommend that our clients regularly conduct their own penetration testing on their environments.

What is Penetration Testing?

Penetration testing involves systematically attempting to break down a firm’s security barriers in their network and data storage systems to expose potential vulnerabilities. These vulnerabilities can ultimately be addressed and remedied before real criminal hackers have the chance to uncover and exploit them. As Benjamin Franklin once keenly noted, “an ounce of prevention is worth a pound of cure.” Penetration testing is a transparent, proactive approach that BasisCode urges its clients to deploy with our software, with their other critical IT and security vendors, as well as with their own systems.

BasisCode Compliance™ Adds RegNews Powered by RegAlytics Into its Leading Compliance Management Software Platform

Never miss regulatory alerts, proposals or new rules with a customizable RegNews feed embedded into the BasisCode Compliance™ Management Software system.

ATLANTA, GEORGIA, UNITED STATES, January 26, 2021 /EINPresswire.com/ — BasisCode Compliance™ announced that it has incorporated RegNews powered by RegAlytics US Alerts™ into its powerful compliance software platform. RegAlytics is the leading provider of daily regulatory updates, sourced from over 1,500+ US financial services and insurance regulators.

“Regulatory alerts and updates are essential for our consultant partners and clients to stay abreast of meaningful compliance issues that effect their business and growth,” says Carlos Guillen, CEO of BasisCode Compliance LLC.

BasisCode Compliance Announces December 2021 BasisCode Compliance Consortium

In its 10th year of compliance tech innovation, BasisCode launches a unique, hands-on compliance consulting and technology conference on December 6-7, 2021.

ATLANTA, GEORGIA, U.S., December 15, 2020 /EINPresswire.com/ — BasisCode Compliance™ announced it will host the BasisCode Compliance Consortium December 6-7, 2021, at the TradeWinds Island Resort in St Pete Beach, Florida. The two-day event will unify the hands-on practical application of a user conference with content-rich sessions on compliance best practices led by the industry’s leading compliance consultants.

Fearing Burnout Before Crossing the 2020 Finish Line?

We are nearly half-way through December. Do you and your team seem more ‘tired’ that usual? It is likely you do!  Under normal circumstances stress levels tend to rise this time of year, but since so many have experienced higher than normal levels of stress since March, by now we are all simply maxed out.

Help yourself and your team avoid total burnout and better balance stressors with these tips from a recent ThinkAdvisor article.

And remember, while there are many tasks one must complete to remain compliant, you can make it easier and less *stressful* with the proper technology framework. Take a look at how BasisCode can help and help yourself to a hot cocoa break!


[Visit Source: ThinkAdvisor]

‘Tis Better to Give Than to Receive

Year-end is upon us and finding ways to say ‘thanks’ to our clients and partners can be challenging. Given traditional compliance requirements, now coupled with the effects of a global pandemic, many are scratching their heads on just how to show their gratitude. Fear not, a recent ThinkAdvisor article offers a top 10 list of holiday gift ideas, each under $100.

Not sure what you can spend this year? With the BasisCode Compliance suite, compliance teams can easily establish firm limits and employees can easily pre-check activities to ensure they do not violate firm policies – before they use their corporate cards. Additionally, the BasisCode mobile app makes it easy to expense items on the go. Happy gifting!


[View Source Article: ThinkAdvisor]

Bates Group Selects BasisCode as Compliance Software Platform Partner

Bates Compliance Consulting Practice Will Utilize BasisCode to Optimize Delivery of its Client Consulting Services


ATLANTA, GEORGIA, US, December 1, 2020 /EINPresswire.com/ — Bates Group LLC has adopted the BasisCode Compliance™ software platform to serve as the compliance management and service delivery vehicle for its Bates Compliance consulting practice.

“We’ve been evaluating the evolving needs of our compliance consulting clients, and looking for a software platform that could address their needs while optimizing our own ability to enhance the delivery of our consulting services,” said Jennifer L. Stout, Chief Executive Officer of Bates Group. “When we discovered BasisCode Compliance, we were confident that this solution would enable us to improve our efficiency and strengthen our ability to support our clients.”


Pandemic Poses No Problem for SEC Exams

In a recent ThinkAdvisor article, Melanie Waddell shared insights into the SEC’s abilities to keep up with examinations despite the global pandemic, reaching a 15% exam rate across RIAs, conducting more than 2,950 examinations in 2020. The switch to a remote based exam program likely poised the SEC to maintain their exam cadence, and it should caution advisors to not become complacent when it comes to compliance.

Advisors who were subject to complying with Form CRS found themselves subject to OCIE’s undisrupted exam initiatives and all advisors examined found themselves showcasing their Business Continuity Plans. Interestingly, a small percentage of reviewed firms had previously established pandemic specific plans, even in advance of Coronavirus.

As firm’s continue with their annual planning, risk assessment and annual review cycles, this article reinforces the need to remain diligent, and offers some insight into considerations firms may apply towards measuring their risk profiles and testing changes applied to their business continuity plans. Furthermore, in a remote based exam environment, the ability to produce complete and accurate documentation in a timely fashion may affect the first impression given during a regulatory exam more than ever.

Using a fully integrated compliance technology platform supports a firm’s ability to maintain continuity in its compliance program’s implementation, execution of tasks, documentation of evidence, and perhaps most importantly, audit ready exports.


[View Source Article: ThinkAdvisor]

SEC Risk Alert: Advisers With Multiple Office Locations

In a recent SEC Examination initiative, OCIE conducted a series of examinations this year of Investment Advisers with multiple branch office locations. Their recent risk alert outlined the most common deficiencies observed during this sweep which included failures related to compliance and supervision and processes related to investment advice.

During the examinations OCIE cites many of the compliance and supervision issues noted stem from policies and procedures that were inaccurate, not consistently applied, inadequately implemented, or simply not enforced. Key program areas noted included Custody of Client Assets, Fees and Expenses, Oversight and Supervision, Advertising and the perennial issues surrounding Code of Ethics.

As firm’s embark once again on their annual planning, risk assessment and annual review cycles, this alert should serve as a guidepost to navigate areas of focus for the SEC and common pitfalls. Not surprisingly, lack of documentation, process, and an inability to produce records contributed to the observed compliance failures.

All of those issues can be remediated with proper policy design and program implementation using a fully integrated compliance technology platform.

Core Compliance Adopts BasisCode Compliance Software Platform

The partnership will help client firms increase compliance efficiency and enable BasisCode to identify and meet future financial industry needs.

SAN DIEGO, CA and ATLANTA, GA  November 10, 2020 – Core Compliance & Legal Services, Inc.℠ (https://www.corecls.com) has adopted the BasisCode Compliance™ (www.basiscode.com) software platform to improve and streamline compliance management and program implementations of its consultancy clients.


IAA Today: Maximizing the Benefits of Compliance Technology


By Carlos Guillen, President & CEO
July 10, 2020

Originally published in IAA Today, an Investment Adviser Association publication.

It has now been almost 20 years since the first computer software was introduced to help compliance ofcers automate the many tasks involved in the day-to-day management of a company’s risk and compliance program. Over this time, compliance technology software has become increasingly sophisticated with fully integrated solutions that can track multiple tasks in different functional areas on a common platform optimizing compliance and risk management programs.

While compliance technology solutions have provided chief compliance officers (CCOs) with the tools to better manage the myriad of compliance tests and procedures, the challenges they face have also increased proportionately as a result of increased FINRA and SEC regulation and the promulgation of complex new rules. When you add in additional reporting requirements which come with industry consolidation, acquisitions or global expansion, harnessing the capabilities of compliance technology to meet these new challenges becomes a goal unto itself.

The purpose of this brief is to share the experiences of compliance professionals and consultants on how they maximize the benefits of compliance technology for their firms and for their clients. We will be looking at three key measurements criteria in assessing compliance technology benefits – effectiveness, efficiency and risk reduction.


Magellan Financial Group Limited Adopts BasisCode Compliance System in Australia

Key Factors in Selection Cited Include BasisCode’s Expansive Functionality and Ease-of-Use 

SYDNEY, Australia and ATLANTA, June 1, 2020 — Magellan Financial Group Limited (Magellan), one of Australia’s leading fund management companies with over A$96 billion in assets, has selected BasisCode Compliance LLC as the provider of its personal trading system.

Technology Release to Include New Launch Portal UI

Technology Release Notes

As part of our commitment to our Clients and Partners, continuous enhancement, and innovation across the BasisCode platform remains our priority. Below you will find a summary of the new features included in our new release.


2020 Client Survey Results Reveal…

How Can BasisCode Help With Form CRS & Regulation Best Interest?

Ask Us How BasisCode Can Help…

With Form CRS & Regulation Best Interest

The SEC recently issued Risk Alerts on OCIE’s Form CRS & Regulation Best Interest Exam Focuses. Meeting these compliance dates has taken center stage for many financial services firms and with good reason.

As firms continue to assess the immediate and long-term changes needed to support these new requirements, the BasisCode Compliance platform is well designed to support your firm’s agile response and procedural updates.

So, what are the Top 3 ways BasisCode can help?

1. Delivery

Utilizing the Certifications module of BasisCode, firm Officers can assemble firm specific distribution lists to prepare and deliver their firm’s Form CRS to the appropriate clients.

2. Communications & Training

Utilizing a combination of our Testing, Certifications and Document Library features, Officers will be able to fully implement, communicate, and train their staff on changes to their compliance procedures as a result of these new requirements.

3. On-Going Management of Conflicts of Interest

Managing broker conflicts has been noted as a FINRA exam focus area for Broker-Dealers. The BasisCode Certifications and Forms Studio will allow firms to model their on-going processes to support initial capture and, scheduled or ad-hoc, requests for updates to conflicts of interest across the organization, be it at the broker level or product level.

The scalable nature of the BasisCode Compliance suite has been designed to enable compliance teams to rapidly design and deploy new or modifications to their compliance programs to maintain strong cultures of compliance and adapt to regulatory change.

This coupled with our hallmark, audit-ready reporting capabilities, will provide confidence in preparing for future regulatory examinations. Schedule a demo today to learn more about how we can help.


Duplicate trade statements stuck at the office?

Business asked to relax personal trading rules recently?

CORE-CCO Continues to Expand Relationship with BasisCode Compliance

ATLANTA and DALLAS, April 20, 2020 – CORE-CCO, LLC (http://www.core-cco.com), a compliance consulting firm specializing in providing comprehensive outsourced solutions to privately- managed funds including private equity and hedge funds, announced that it has been migrating a large number of its fully outsourced clients onto the BasisCode Compliance LLC software platform.


Updating Security Practices

Updating Security Practices

Best Practices for a WFH Environment

Based on Morris, Manning & Martin, LLP’s recent article “Potential Regulatory Scrutiny Of COVID-19 Remote Work Cybersecurity Risks”, and as more organizations shift to a remote based workforce, we agree that there is a heightened need to stay vigilant in addressing cybersecurity risks and cyberattack threats related to new remote working environments – and it’s clear that the regulators expect the same.

Drowning in a sea of statements because employee trading volume spiked?

MGL Consulting Adopts BasisCode Compliance Software Platform

THE WOODLANDS, T.X. and ATLANTA, April 8, 2020 – MGL Consulting, LLC (www.mglconsulting.com), a pioneer in the compliance and risk management sector, has adopted the BasisCode ComplianceTM (www.basiscode.com) software platform to serve as a compliance management system for the firm’s investment clients.


A Message to BasisCode Compliance Clients Regarding COVID-19

Dear Client:

The world looks entirely different today as we face the realities of the COVID-19 pandemic. We are struck by the way in which people have pulled together and adapted to a new environment to ensure their safety and the safety of others.

At BasisCode Compliance, we know that in these uncertain times, our clients and partners are facing operational uncertainty and volatility with a degree of confidence thanks to the technological advancements that make working from home a viable possibility today.