- ComplySci and illumis: Two regulatory compliance solutions joining together to benefit clients’ regulatory needs arrow_forward In November of 2021, ComplySci announced the acquisition of illumis, a premier data aggregator and technology provider whose solutions are used by financial services firms to identify and mitigate risk from employee political contributions. While the initial acquisition saw the firms operating as two independent organizations, we are thrilled to announce the merging of the illumis and ComplySci brands. With this initiative, we aim to arm our clients with a more comprehensive solution to mitigating compliance risk, which includes the increased risk associated with employee political contributions.
- Why real-time data is essential to helping your investment firm avoid violating pay-to-play regulations, SEC rule 206(4)-5 arrow_forward Political contributions made by firm employees pose a significant threat to investment advisory firms. And even firms with the best compliance teams can be at risk of violating pay-to-play regulations, like the Securities and Exchange Commission’s (SEC) rule 206(4)-5, given the complexity of the rules and the myriad of regulations to which firms must comply. Because of this, investment firms must arm themselves with the access to and support of real-time data, which can help identify potential violations and anomalies in the political donation process. By leveraging real-time data, investment firms can quickly detect suspicious or unauthorized activities and take prompt action to prevent pay-to-play violations.
- Beyond SEC Rule 206(4)-5: A look at state and local political contributions compliance regulations arrow_forward SEC Rule 206(4)-5 is arguably the most well known regulation regarding political contributions compliance or pay-to-play compliance. However, it certainly isn’t the only regulation to which firms must comply. In fact, beyond federal regulations, firms which take part in government contracted work must contend with numerous and varied state and local regulations as well. Such regulations present unique challenges because of the various requirements within each, which should they be neglected, can cause significant financial and reputational damage.
- Aligning pay-to-play rule 206(4)-5 compliance practices with your investment firm’s regulatory compliance program arrow_forward While it would be almost too easy to treat the Securities and Exchange Commissions’ (SEC) pay-to-play rule 206(4)-5 as a special requirement implemented only during election years, that mistake can cause serious, firm-wide damages. In fact, for investment firms, establishing a compliance program which actively and regularly incorporates compliance with the SEC pay-to-play rule is essential to avoiding fines, sanctions, lockout periods, loss of revenue and a damaged reputation.
- Complying with the SEC Pay-to-Play Rule: What should be involved in the political contributions preclearance process arrow_forward For financial firms who rely on government contracted work, complying with the Securities and Exchange Commission (SEC) Pay-to-Play Rule, in addition to any other relevant political contributions compliance ruling, is essential to maintaining your contract and avoiding potential fines, sanctions, lockout periods and, ultimately, loss of revenue. While the pay-to-play rulings do limit which campaigns your employees can contribute to, it does not completely rule out contributions across the board. Which is where the political contribution preclearance process comes into play.
- Is employee political contributions compliance still mission critical for regulatory compliance programs in off years? arrow_forward Short answer. Yes. Employee political contributions compliance, otherwise known as pay-to-play compliance, remains a core compliance challenge both in on and off election years. While major elections, like we saw in 2022, draws in more excitement and awareness, your employees are likely contributing to their political parties’ years round, every year.
- Preparing for 2023 SEC exams focused on political contribution monitoring arrow_forward We may just be wrapping up the final run-up elections for the 2022 midterm year, but for financial advisory firms subject to pay-to-play regulations such as the Securities and Exchange Commission (SEC) Rule 206(4)-5, the regulatory ramifications are just getting started. As was made obvious in 2022 with the SEC’s fines and penalties reaching a recording breaking $6.4 billion, the Division of Examinations is making strides to ensure firms are regarding rules, regulations and penalties with the necessary level of consideration.
- Learnings from the midterm election: Why political contributions compliance is more critical than ever arrow_forward Did you know? Funding for the 2022 midterm elections reached a whopping $9.3 billion. A number which, for those of you keeping track, surpasses the 2018 election by $2 billion.
- Trends in the political contribution compliance space: how to navigate FINRA and SEC pay-to-play rules in 2023 arrow_forward Pay-to-play rules and regulations, including the well-known Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission (SEC) pay-to-play-rules, have become a focal point for compliance teams navigating the midterm elections in 2022. However, even in off years, or years with no major elections, for those firms who rely heavily on government contracted work, political contribution compliance can’t just turn off.
- Six features your PCV platform should include to comply with SEC political contributions compliance requirements arrow_forward Ensure employees aren’t putting your firm at risk of reputational damage or costly violations by integrating a political contribution compliance platform into your tech stack.
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