Flex Your Compliance Program: Don’t Let Your Control Room Control You

Take Control of Conflicts

By Sunil Bedha, Chief Technology Officer at ComplySci

The secret to a successful compliance program is convergence. The more activities that can be streamlined into a single solution, the better.

As we’ve learned from our conversations with CCOs, data analysis has become a top concern. CCOs are now expected to be data scientists, and the quantity of data they’re asked to review continues to expand. Automation is the clear path forward. Without it, compliance teams will be drowning in time-consuming manual tasks, using Excel spreadsheets to log data, while exposing the firm to significant risk in the process.

This sentiment is shared by over half of our customers in our latest survey, who overwhelmingly cite data management as the number one compliance initiative for 2021. In that same survey, control room/conflict check is the second most popular initiative firms want to prioritize. The two complement each other, since one way to securely manage data is to introduce a control room function into your firm’s compliance program.

In response to a gap in the market, ComplySci’s Compliance Control Room solution helps compliance professionals streamline firm-wide activity tracking and conflict analysis. While traditional concepts of control room focus specifically on deal management, we have a more holistic view. The purpose of any control room function should be flexible, relevant to multiple levels of compliance, diverse industries, and different firm sizes.

Natassia Kourousi, Compliance Director at Montague Private Equity, explains that “the purpose of Control Room Compliance is to manage information barriers.” This thinking informs our solution. Whether a business meeting, inside information, wall-cross, or deal, ComplySci’s Compliance Control Room can collect and normalize the activities and data that matter most to your firm. The goal is to help firms continue on the journey of compliance convergence.

Before launching the solution, we met with our customers for weekly design sessions. We wanted to comprehend how our solution can help firms of all sizes. These sessions were incredibly productive and influenced the development of the solution.

“The purpose of any conflict checking function should be flexible, relevant to multiple levels of compliance, diverse industries, and different firm sizes.” ~ Sunil Behda, CTO

The biggest takeaway is that a control room function can help drive a culture of compliance. Ultimately, compliance is everyone’s responsibility at a firm. The most successful CCOs and senior compliance leaders understand that for the entire firm to succeed, all employees must care about following the rules.

In my conversation with Catherine Mandell, CCO at Argand Partners, she stresses the importance of cultivating the correct mindset. “The way I look at compliance is quite simple. Compliance is all about doing the right thing. This involves not just asking can I do this, but should I do this, and how,” she says.

A control room function empowers associates within a firm to participate in building that culture by proactively informing compliance teams of potential conflicts. By streamlining this process with automated workflows, more people at the firm are likely to come on board, knowing that the process is both efficient and secure.

ComplySci’s Control Room is an integrated solution that enables compliance teams to collect and manage the flow of MNPI, and proactively identify potential instances of market abuse, insider trading, or other conflicts of interest. Learn More