Regtech Firm Releases Annual CCO Playbook, Addressing 2022 SEC Cases And Rules, FINRA, 2023 Themes And Suggested Responses To Active Regulatory Landscape
Regtech firm COMPLY announced the publication of its 2023 Chief Compliance Officer Playbook, which provides industry insights, reviews key rulings from 2022 and outlines expectations for 2023. The firm produced the annual playbook in conjunction with subsidiaries ComplySci, which produced it in the past, and RIA in a Box.
“2022 was, without a doubt, one of the most active regulatory years in recent history,” according to the playbook. “With major cases and significant rulings creating ripples within the financial advisory landscape which are sure to continue to impact firms for years to come.”
According to the press release, the SEC received $6.439 billion in fines and disgorgement in 2022, as compared to $3.852 billion for the prior year, which the release refers to as “a nearly unprecedented level of regulatory action and impact.”
The playbook highlights significant 2022 cases brought by the SEC in five key areas: Reg BI, books and records, pay-to-play, cryptocurrency and Form CRS. The guide also recaps major proposed and adopted rules for the year.
“Chief Compliance Officers and their teams have a near impossible mission to mitigate heightened risk points while navigating the ever-increasing complexities of the regulatory landscape,” said COMPLY Chief Regulatory Officer John Gebauer. “The nuance and specificity required of such a position has placed enormous burden on the executives, leaders and staff in those positions.”
The playbook includes an in-depth interview with Gebauer, as well as updates about the SEC and FINRA and their outlook for 2023.
Gebauer continued, “The 2023 edition of COMPLY’s CCO Playbook details the kinds of sophisticated risk that will continue to impact the regulatory compliance landscape. By considering the enforcement actions of the major regulators and their 2023 exam priorities, we provide strategies to achieve compliance and risk mitigation for firms across the financial services landscape.”
The guide also highlights the firm’s top regulatory themes for 2023, which are: “reacting to regulators,” “learning from failures,” “the macro effects of market trends,” “passing fads or investment mainstays?” and “more opportunities and more risk.”
It concludes with a discussion of ways to ensure that a firm’s resources are aligned with compliance demands, including consulting and outsourcing, technology solutions and education and training.
COMPLY’s CEO, Amy Kadomatsu, said, “Compliance professionals need a comprehensive view of the evolving regulatory environment, and a holistic solution set to meet the dynamic responsibilities before them. COMPLY is uniquely positioned to empower CCOs and their teams to develop and deliver strategically sound and operationally impactful compliance programs today, and into the future.”
COMPLY was formed in November 2022, bringing together regtech companies ComplySci, National Regulatory Service (NRS), illumis and RIA in a Box under a unified parent brand and corporate umbrella. The firm hosts the annual ComplyConnect Conference & Expo and in 2022 announced its inaugural ComplyConnect Awards.
Michael Madden, Contributing Editor & Research Analyst at Wealth Solutions Report, can be reached at mmadden@wealthsolutionsreport.com.
