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September 23, 2021

illumis Compliance Product Update: Better Organizing Data by Employee in illumis

We’re continually updating our compliance platform to better serve our customers. We’re excited to highlight the newest functionality in our latest feature update.

First, the section of the platform labeled “Monitoring” will now be labeled “Database”. Instead of just being a list of monitored searches in the platform, this view will now serve as more of a directory of employees listed in the system. And you’ll instead be able to attach searches – either for the employee themselves, or for a spouse or household member – directly to that employee listing. This will make it much more clear who is linked together in the system, and enable you to organize your monitoring more effectively.

add person

Going forward, instead of adding a new employee as a search, you’ll add a new employee to the directory listing, and then enable a search of that employee (and potentially add a spouse or household member search as well).

This update also significantly improves platform performance, making the platform faster and easier to use.

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If you have any questions about how this new functionality works, please contact us at support@illumis.com.
Why real-time data is essential to helping your investment firm avoid violating pay-to-play regulations, SEC rule 206(4)-5

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

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

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.