How to Plan a Compliance Solution Migration

    

Regulatory Compliance is a challenge for financial services and to nail the compliance solution you use is crucial. It is the responsibility of the compliance department to make sure rules and policy are in place to protect the company reputation.

Doesn’t matter the size of your organization or compliance department. Only the best compliance strategy will suffice, if you have a good compliance program but a weak compliance software provider that doesn’t listen to your priorities, migrating to another option is pivotal.

Compliance migration isn't an issue that should be taken lightly, though, which is why you need to plot the progress in style.

Why should you want to complete a compliance solution migration?

Before making any changes to your venture, the first question you need to ask is: why?

Is your current compliance solution ticking all the priorities boxes of your department? If not, you may assume it isn’t the ideal solution for your business.

The fallout of compliance failure

The indirect impacts on your endeavors are hugely negative. Failure to meet compliance regulations can lead to the following problems:

Financial penalties – the most obvious repercussion is that you could face a fine from the governing bodies within your country of operation. Serious data and safety breaches will land you a six-figure fine while the most severe cases can grow into the millions.

Damaged reputations – put yourself in a client's shoes. Would you happily use a financial service that has been negligent? Exactly. A single mistake can severely harm your reputation with clients, partners, and others. In some cases, it'll be impossible to ever regain it.

Downtime – time is money. Any scandal could force you to temporarily cease production. When coupled with the efforts needed to rebuild your reputation and implement the necessary improvements, this could cost you dearly. Prevention is a far better form of protection.

Staff turnover – customers aren't the only key people that could be left disappointed by your lack of compliance. Employees won't want to work for a company that shows a story of scandals and regulatory fines. It could lead to reduced team strength.

Other repercussions can surface as a result of compliance violations. In the most severe cases, it could even result in imprisonment.

Signs you require a compliance software migration

By now, you should appreciate the need to partner with a vendor that helps you meet all compliance regulations without interruption. So, what are the signs that your current strategy needs an overhaul? 

If you answer 'yes' to any of the following questions, it's likely that an upgrade is necessary. 

  • Do you have concerns that your compliance vendor is not updating their product? 
  • Is doing more with your current compliance budget important? 
  • Would having many compliance solutions on the same platform from one vendor make life less stressful? 
  • If you could use the latest compliance technology, would you switch vendors? 

Compliance is not an issue where you can afford to fall short. If you're a compliance officer that's less than 100% happy with the existing solution, now is the time for change.

The next logical question, then is: how can I get it right?

Planning your compliance solution migration

Knowing that you want to change compliance vendor is one thing, but you must follow the right protocol. After all, there's little point in investing time into a new service that will subsequently need to be replaced. 

Preparation is the key to success.

The compliance solution migration timeline

When you are planning to update and upgrade your approach to compliance, each of the following steps must be completed in chronological order.

Analyze your existing service

The fact that you want to make a change suggests that a switch is required. Still, it's always a smart move to analyze the current situation. Firstly, this will provide mental reassurance that you are doing the right thing. Secondly, it's a chance to make a list of all the issues that need improving following the switch.

Find the right new vendor

The next step is to conduct your research and find a new vendor that can satisfy your requirements. If you want some tips on how to find the perfect vendor, we recommend you to read this - Taking the Next Steps With Your Compliance Solution.

Inform the existing vendor that you're leaving

If you are contracted to the vendor via a subscription, you should advise them that you want to terminate the agreement or inform that you will not renew.

Complete the switch

Finally, you need to speak with the new vendor about your intention to switch. This should include confirmation of the exact software requirements, a date for the switch (if not immediately), and the support that will be needed to set up and manage your compliance platform.

The new software provider checklist

The importance of selecting the right compliance software cannot be emphasized enough. First and foremost, you must choose one that has a solid reputation and track record. You should additionally ensure that any service provider can provide all of the following things:

  • Level 1 compliance with external rules and regulations
  • Level 2 compliance with internal systems of control
  • A convenient platform that allows you to manage everything in one place
  • A platform that can manage employee activities across all relevant tasks
  • Easy installation and learning to unlock the full potential of the software
  • Easy integration with other tools used by your organization
  • Compliance software that evolves with developing regulations in all territories and is future-proof
  • Reliable customer care and support if problems surface

Ultimately, then, you need a compliance software that can help satisfy your Duty, Objectives, and Responsibilities in the most efficient manner. Achieve this, and you won't go far wrong.

Meeting compliance regulations with MyComplianceOffice

MCO offers a comprehensive compliance platform designed with all regulatory exigences in mind. With over 12 years of experience, we serve businesses in over 80 countries and process over 700m records every year.

The affordable, convenient, and adaptive software package offers a suite of risk management products. Compliance modules come from the same platform as MNPI and Insider List Management, Deal Conflict Review, Third Party Risk Management, Registration and Licensing, Anti-Bribery & Corruption, and Trade Surveillance and Suitability. 

MCO allows you to satisfy the five key functions of compliance, which are;

  • Identify the risks facing your business
  • Design and implement appropriate controls
  • Monitor, report, and manage the controls
  • Resolve compliance difficulties
  • Enhance employee accountability

The MCO platform allows you to do this in the most effective and affordable manner while providing a versatile platform. It makes your job easier while ensuring that the business is secure and compliant at all times. This covers various vital components, including the following issues:

Know Your Employees

KYE activities are an essential feature that all businesses must master. The MCO platform provides one platform for compliance professionals who need a more efficient way to manage employee activities such as:

  • Pre-trade Clearance,
  • Certifications,
  • Private Transactions,
  • Gifts & Entertainment,
  • Political Contributions,
  • Outside Business Activities,
  • And more.

Know Your Transactions

KYT and transaction management are a sensitive subject, and the MCO platform helps mitigate risk from breaches in market manipulation, insider trading, suitability, conflicts of interest, fund mandate and investment banking activities. This tackles key issues like:

  • Control Room Compliance,
  • Suitability,
  • Deal Review Management,
  • Trade Surveillance,
  • And more.

For the sake of client needs, as well as the company's reputation and regulation compliance, this aspect is vital.

Know Your Third Party

KYPT is another integral ingredient in the recipe for success. With MyComplianceOffice, the risks associated with third parties can be managed in a simplified and streamlined manner. This covers key elements such as:

  • Third party onboarding activities 
  • Initial and ongoing third-party data management
  • Ongoing third-party due diligence
  • Anti-bribery / Anti-corruption
  • And more.

The internal processes facilitate an easier approach to overcoming the risks, supporting your business with immediate and sustained results.

The MCO Promise

MyComplianceOffice provides a dedicated compliance platform, and can be incorporated into the company model to replace outdated facilities and software with ease. Crucially, with experts continually adapting the platform to meet new regulations and overcome emerging dangers, it is the one-stop solution for all of your compliance needs.

Conclusion

Regulatory Compliance for financial institutions and service providers is an aspect of business where only the best will do. For the sake of social responsibility, the future of the business, and your sanity, now is the time to regain control.

While the insight gained from this guide should make a positive impact, partnering with a winning software provider is essential. To find out more and take control of your compliance issues today, give MCO a call.

The future of your business has never looked safer.