Weathering the Storm: Successful Compliance in A Regulatory Whirlwind
Vigilant Insights
Introduction
There is little to argue that compliance success has become a more difficult achievement in the past few years.
Firms discovered early on that more resources than ever would be required to navigate the SEC’s regulatory agenda.
Rules adopted in 2022 initially made waves throughout the industry, but was quickly followed by an even more aggressive year in 2023.
2024 has shown little reprieve for the industry, as multiple SEC charges have totaled hundreds of millions of dollars in fines.
Avoiding Compliance Hazards
Weathering this storm requires experienced compliance professionals equipped with the correct tools to help Firms avoid compliance hazards. Some major navigational hazards include, but are not limited to:
- The Marketing Rule
- Multiple Firms have been charged, and interpretation of SEC Risk Alerts would suggest that a formal Marketing Review Process utilizing compliance tools with recordkeeping capabilities will be essential for success.
- Recordkeeping Requirements
- 26 Firms were charged for off-channel communications as Firms struggle to find solutions that respect employee privacy while properly maintaining all records.
- Cybersecurity
- This continues to be a top priority for the SEC, and Firms must perform due diligence over their cybersecurity partners. Compliance policies and procedures must be designed to address and promptly report cybersecurity events.
- Artificial Intelligence (“AI”)
- As the SEC sweeps for AI use, Firms must also be aware of the risks they face with the use of AI. Advertising AI must be done carefully and accurately.
Vigilant’s Conclusion
A dedicated compliance partner can provide the support, resources, experience, and insights necessary to find compliance success in an incredibly aggressive regulatory climate.
Some tools that can lead to success include a Gap Analysis and Best Practice Compliance Review, Mock SEC Exams, Outsourced Compliance Solutions, Advertising and Marketing Review Consultation and Support, and more.
By utilizing the resources and wealth of experience Vigilant has to offer, your Firm can focus on advancing your business goals.
Schedule a call with Vigilant today to learn more about how we can help support your Compliance Program.