ComplySci, a New York City-based provider of regulatory technology and compliance solutions for the financial services sector, has published guidance for complying with regulations of the financial services industry.
The 2022 Chief Compliance Officer Playbook is an annually published guide that examines new and anticipated regulatory compliance changes and their impact on the financial service industry. The playbook provides insights and suggestions from the company's executives and subject matter experts, as well as industry leaders and regulators. It also explores current regulations and details internal and external challenges faced by compliance teams, ComplySci said.
The guide includes a review of the 2021 Securities and Exchange Commission's regulatory actions and penalties levied against financial services firms; the SEC and Financial Industry Regulatory Authority's 2022 Exam Priorities; and the implications of federal, state and local pay-to-play rules in an election year.
Compliance officers must develop a comprehensive regulatory compliance program that analyzes changing financial systems and mitigates potential risks with appropriate protocols and tools, ComplySci Chief Executive Officer Amy Kadomats said in a statement.
In the 2021 fiscal year, the SEC enacted a number of critically important and first-of-its-kind enforcement actions, awarding $564 million through its Whistleblower program, the firm said. Although the number of enforcement actions taken by the commission decreased slightly from 2020 to 2021, examinations rose to more than 3,000 cases and total penalties grew from $1 billion in 2020 to $1.4 billion in 2021, ComplySci said.
“This trend, coupled with increasing public scrutiny and chief compliance officer liability, as well as ever-growing regulatory reporting requirements continue to make compliance more complex and increases the risk potential for organizations,” ComplySci said. “Such regulatory increases are also why approximately 70% of compliance professionals report they are considering increasing compliance process automation in the next 12 months.”