The COMPLY US Virtual Customer Summit is here! The conference brought together experts and our customers from across the country, all in the name of regulatory compliance education. Sessions ranged from Pay-to-play compliance in an election year to trends shaping the regulatory and advisory landscape.
Now that the afternoon sessions are complete, we’re sharing some of the top takeaways we heard from our industry-leading speakers this morning.
Top takeaways from the morning of the COMPLY US Virtual Customer Summit
Attendees have already gained some incredibly valuable insight, and we have more in store for them! These are some of the top takeaways from today’s sessions:
1. Heightened scrutiny and enforcement around Pay-to-play compliance.
With this year being an election year, it’s important to note that there’s an increased risk of Pay-to-play violations, including hidden risks like in-kind donations, joining fundraising committees, and even seemingly insignificant contributions. Corrie Scoby, a COMPLY Compliance Consultant, said, “The SEC has signaled its intentions to enhance enforcement actions.” She added that firms should “be prepared for increased audits and investigations,” even those involving technology.
2. Mitigating risk and staying compliant.
While many firms currently rely on manual checks to monitor employee contributions, Scoby emphasized the need for a more robust Pay-to-play compliance program. Developing a clear political contribution policy and implementing effective monitoring procedures are crucial to minimizing risk. Additionally, staying informed about the unique challenges of election years, where politicians are particularly active, is also essential.
3. Time to gear up for the Private Funds Rules.
A significant portion (67%) of attendees acknowledged they’ve begun preparing for the upcoming Private Funds Rules, but much work remains. COMPLY Compliance Consultant Max Mejiborsky said, “There are some requirements that are burdensome and would require quite a bit of preparation,” emphasizing the need for proactive preparation by private equity firms.
There are a number of key areas where private equity funds should focus their compliance efforts in 2024. Some of these areas include:
- Adherence to contractual agreements regarding Limited Partnership Advisory Committees (LPACs) or similar structures. This has been a growing area of regulatory scrutiny since 2015, according to Mejiborsky.
- Accurate calculation and allocation of fees and expenses, ensuring transparency and adherence to regulatory guidelines.
- Robust conflicts controls and disclosures regarding the use of affiliated service providers, mitigating potential conflicts of interest.
- Consistent due diligence practices aligned with established policies, procedures, and investor disclosures.
4. Meeting client demand for digital assets as an investment option and staying competitive.
The session highlighted the growing demand for cryptocurrency investment options among clients. COMPLY Compliance Consultant Hovig Melkonian said, “A lot of times, just responding to the demand that the client is bringing up to the adviser is almost the most important pro” of firms offering digital assets as an investment option.
Not only that, but advisers who embrace cryptocurrency compliance can:
- Respond effectively to client inquiries and investment goals.
- Gain a competitive advantage over firms hesitant to offer digital assets.
- Attract new, tech-savvy investor demographics.
By navigating the complexities of cryptocurrency compliance, advisers can:
- Become a trusted resource for clients seeking guidance in this evolving field.
- Develop valuable knowledge and experience in a market poised for wider adoption.
- Position themselves as forward-thinking leaders in the investment industry. Tools like the COMPLY™ Digital Asset Trade Monitoring solution can be a game-changer for firms!
Complying with COMPLY
The COMPLY US Virtual Customer Summit offered valuable insights on Pay-to-play compliance, cryptocurrencies, new regulations, evolving trends, and more. But how can you translate this knowledge into actionable steps for your firm?
COMPLY offers tailored consulting and technology services designed to empower your firm. Our team of experts can help you identify and address compliance risks associated with navigating Pay-to-play compliance in an election year, the intricacies of the private equity compliance, and proactively prepare for the growing demand of cryptocurrencies as an investment option. By leveraging COMPLY’s tools and solutions, you can ensure a thorough compliance program that safeguards your clients’ and investors’ interests while meeting the evolving regulatory standards.
Are you ready to take a proactive approach to compliance? Let’s talk!