Being a Chief Compliance Officer navigating regulatory change is a lot like quarterbacking an offense in an action-packed (American) football game: you’re responsible for calling the plays, reading the opposition, seeing opportunity, and leading the team to victory. This can really be applied to any sport or business. With the expanding scope of regulations demanding constant improvement and agility, how do compliance teams anticipate change and win the regulatory game?
Stay Apprised of Rulemaking
In order to read the opposition, you’ve got to watch film on the opponent.
Make it a point to devote time every day to stay on top of industry news and new regulations. Sounds easy, but Compliance Officers get pulled in so many different directions and finding the extra time can be challenging. Staying apprised of what is on the regulators’ agenda can put you and the firm in a position of being proactive rather than reactive when a new rule comes down the pipeline.
Spend the first 30 minutes of your day having your “Coffee and Regs”
- Make it a point to devote time every day to stay on top of industry news and new regulations. Sounds easy, but CCOs get pulled in so many different directions and finding the extra time can be challenging. Staying apprised of what’s on the regulators’ agenda can put you and the firm in a position of being proactive rather than reactive when a new rule comes down the pipeline.
- Subscribe to bulletins from law firms and compliance consulting firms, read Investment News, and listen to podcasts (like CSS’s Coffee & Regs!)
- Consider joining industry associations, such as the Investment Advisers Association and the Financial Services Institute. These groups engage with legislators and regulators to help shape regulation and affect change, and are a great resource for regulatory updates.
- Attend industry conferences and network with other compliance professionals. Conferences provide the opportunity to learn about best practices and hear from your peers on how they are navigating new requirements.
Educate Members of Your Firm on the Impact of Changes
Team captains don’t win games alone; they’ve got a team behind them helping them to victory.
Once the regulators propose a new rule or regulation, educating others within your organization on the impact of the rule is a key part of the process. Engage other people in your organization and give them ownership of compliance. Not only can this lead to more effective implementation of new rules, but it can also help the firm with risk prevention. Call a meeting with other department heads, tell them the latest challenge, and ask them how the firm is going to tackle it. By taking a team approach, you may get some really creative solutions from other people in the organization as to how the firm can implement the rule changes.
Incorporate Regulatory Changes into Your Compliance Program
See the opportunity and create a strategic offense.
The process of implementing regulatory changes is a great opportunity for CCOs to show their value to the business. Support business growth by taking a business-friendly approach when responding to regulatory changes. Get creative and bring ideas to the table! Studies have shown that people are the greatest challenge to implementing change. Effectively incorporating regulatory changes into your compliance program requires the business to embrace a culture of proactive compliance and risk management.
To read the full chapter Navigating Regulatory Change: How to Win the Regulatory Game, download The CCO’s Playbook.
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CSS frequently publishes blog posts which are written by our team from their observations in the field, at conferences and through experiences with compliance professionals. These posts are designed to further knowledge and share industry best practices. Topics run the gamut, including Form ADV, cybersecurity, MiFID II, position limit monitoring, technology challenges and more. Complete and submit the brief form below to receive notifications when we publish new content.