Let’s talk about compliance teams—always doing more with less while protecting the firm from regulatory scrutiny and risk. Compliance teams have multiple tools for multiple compliance requirements, from e-mail surveillance to trade monitoring. But they don’t have a tool for them—they don’t have a tool to manage the compliance program. Instead, they have a system of Word documents, spreadsheets, and calendars. They make it work, but it is hard to make it work. They deserve better.
The Fragmented Landscape of Compliance Tools
There was a time when compliance programs could run with a compliance manual and a calendar of deadlines. But regulatory obligations have expanded to include reporting on both structured and unstructured data, monitoring multiple communication channels, keeping up with faster trading, and managing an increasing number of employees trading in personal accounts. Every time a new rule is published, a vendor is ready with a point solution for that particular requirement.
Yet, the compliance program itself—still run on documents, spreadsheets, and calendars—is getting unruly. The policies and procedures have multiplied, with a new policy for each new rule and constant adjusting based on regulator sentiment. Spreadsheets have tabs for every regulator, and calendars are packed with regulatory deadlines, internal project deadlines, and obligations from side letters and other agreements. The tools—word documents, spreadsheets, and calendars—are no longer enough.
On any given day compliance teams are logging into various tools, adding and extracting data, and constantly monitoring. They are chasing colleagues for information so that they can complete compliance tasks. They are manually updating documents and spreadsheets. They are emailing back-and-forth with the compliance team and non-compliance colleagues. They are rockstars, making it all work. But—we can’t say it enough—they deserve better.
A Tool Built for the Compliance Team
What do compliance teams want? They want to pull it all together in one place—a tool that integrates the people, processes, and systems that make up their compliance program. And they don’t want to change their program to fit the rigid framework of yet one more tool. And they shouldn’t have to! They deserve a solution that can be customized to fit how they work, from document management to collaboration on tasks, cases, and projects. What might this tool be like?
Policies and Documents:
- Policies and other documents that form the base of the compliance program are centralized in a document library with version control, so you always know what’s current. Eliminate the need for shared drives—policies are the foundation of the compliance program and there should be a single source of truth.
- Policies and other documents can be referenced throughout the program. Link the relationships between regulations, policies, and compliance tasks and actions.
Tasks, Checklists, and Forms:
- Each task has its own checklist or form, setting forth the requirements for how that particular task is completed and what is required for proof of compliance. Having these checklists and forms embedded in the task workflow makes it easier for colleagues to take over tasks and makes it easier to keep up with status updates.
- Having tasks, checklists, and forms standardized and centralized in one tool makes it easier to adjust the program as regulatory or firm requirements change.
- Tasks are often relevant to multiple regulatory requirements. All of the evidence is centralized in one tool, regardless of the regulation or jurisdiction.
- Having your own custom checklists and forms shows regulators that you have built a compliance program that is tailored to your firm’s needs and risks, rather than relying on an off-the-shelf tool.
- Compliance teams should be able to communicate with colleagues within the task workflow itself, avoiding endless e-mail chains.
Case or Issue Management:
- Case management is an important part of any compliance program. Tasks can be escalated to cases with any follow-up question, flagged trade or email, or any decision that deviates from policy or best practices. Often, it’s just a matter of documenting that you looked into the issue and that it’s resolved.
- A case might also be an employee or investor inquiry that requires research and an answer.
- Sometimes cases are more like long-term projects involving cross-departmental collaboration, such as with regulatory change management, onboarding new vendors, or expanding into a new jurisdiction.
- Compliance teams need a tool with customized checklists and forms for managing and closing out different types of cases. They also need audit trails and linked evidence to demonstrate closure of the matter and proof of compliance. And, of course, they need the ability to collaborate with others on a case.
Compliance Log & Reporting:
- The compliance log is the expected end of the compliance workflow. Whether it is a case log or part of the annual review process, compliance teams deserve a tool that helps them pull it all together.
Dashboards:
- Compliance teams need a clear view of everything in one place. Who’s working on what? Where do things stand? What are the trends? What did we accomplish this year? How many regulations are we complying with?
We hear you!
We’ve seen firsthand the frustration compliance teams face when navigating outdated systems, and we’ve listened. With Skematic, firms can finally retire the fragmented mix of spreadsheets, emails, and disparate tools, replacing them with a solution built specifically for compliance teams. It’s a flexible platform that adapts to your workflow, offering custom workflows, automated task management, and comprehensive reporting. You’re doing an awesome job, but you deserve better.