How technology can improve your compliance process

PEI PFC Forum 2013

These are my notes from the Private Fund Compliance Forum 2013.

Jacqueline M. Giammarco, Esq., Chief Compliance Officer, Stone Point Capital
Stephen Pope, East Regional Sales Manager, Smarsh
Shawn Pride
, Partner, Ernst & Young LLP
Arthur Zuckerman, Chief Operating Officer, Chief Compliance Officer & Partner, Avista Capital Partners

Think about how the technology can help your business processes, not just the compliance process. It’s better to leverage the business process and improve it.

A particular good starting point is investor on-boarding and automating the subscription process.

Employee trading is one area, particularly for private equity and real estate, that is a compliance nuisance. There is little risk in the fund managers operations. Technology can help eliminate the bureaucratic and time-sink processes mandated by the Adviser Act rules. Automating the process removes the stacks of paper from the office and means that the CCO and staff do not have to stare at all of the trades, just exceptions.

There was pitch for Compliance 11, not just for securities monitoring, but also for case management and tracking other compliance processes.

Vendors should be SSAE16 certified so they are taking the proper steps to protect your data.

Few attendees used technology to upload Form PF. One attendee said to was expensive and seemed to regret using it.

Don’t establish policies to monitor email and social media if you won’t have the time to actually monitor them.