Conflicts of interest are at the core of many regulatory compliance issues. But solely reacting to conflicts of interest after the fact is not enough to meet current regulatory expectations.
In remarks made at the PLI Broker/Dealer Regulation and Enforcement 2021 event in Washington, D.C on October 6, Gurbir Grewal, Director, SEC Division of Enforcement stated that the agency will “design penalties that actually deter and reduce violations, and are not seen as an acceptable cost of doing business”. He went on to say that the agency will be focusing on “proactive enforcement” to address risks before they cause any harm to investors.
Taking a predict and prevent mindset around managing conflicts of interest can provide the proactive approach that regulators are looking for—and the right technology can provide the means to get there.