Compliance has now become a proactive exercise, to anticipate regulatory change and ensure firms remain up to speed with the latest requirements. In the current environment, with the increase in regulation, and the demands on personnel time it has created, there has been a driving client demand for Outsourced Compliance Solutions customized and tailored to firms’ business.
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Compliance has now become a proactive exercise, to anticipate regulatory change and ensure firms remain up to speed with the latest requirements. In the current environment, with the increase in regulation, and the demands on personnel time it has created, there has been a driving client demand for Outsourced Compliance Solutions customized and tailored to firms’ business.
“While historically, clients would have one or so major regulatory updates in a year, in recent years clients have had to contend with multiple significant regulatory updates in a year, and this is in addition to the standard sweep examination guidance and regulatory risk alerts,” says Salvatore Faia, JD, CPA, CFE, President & CEO at Vigilant Compliance, LLC (“Vigilant”), a firm which provides such Outsourced Compliance Solutions.
The regulatory uptick has equated to more time and specialized focus in compliance policies around these updates, which Vigilant’s clients look for the firm’s expertise to handle.
Constant changes throughout the industry as they relate to SEC Rules and Regulations present a significant risk for firms that are not following along. Vigilant’s Chief Operating Officer, Chuck Martin, MBA, identifies how it can become quite complex to stay up to speed with the new rules, especially as the new Marketing Rule gets underway. “We anticipate this will require additional information needed to be released by the SEC after the effective date,” says Mr. Martin.
The SEC has really focused on investor protection and has displayed this on multiple SEC charges. Martin advised: “This is well worth the attention of many hedge funds as it is crucial to have the support and infrastructure to run a strong compliance program.”
In this ever-changing environment, Vigilant clients are looking for opportunities for synergistic enhancements that allow them to operate efficiently. The ever-evolving macro-economic environment has seen client needs shift from on-going maintenance of compliance programs to proactive anticipation of regulatory updates and new requirements resulting from the current situation.
In addition, due to the continuous updates and changes from the SEC, having an experienced Chief Compliance Officer to serve as CCO for the Fund or Adviser is crucial. In addition, having the Support Staff for the CCO is just as important to stay on top of everything. Vigilant’s President & CEO, Salvatore Faia, JD, CPA, CFE, comments: “Many firms are looking to leverage specialized outsourced providers, such as Vigilant, which are not only cost effective, but allows firm’s to utilize in-house personnel to focus on their core competencies.”
