Compliance Is In The News

For any regulated industry compliance with Federal or State statutes and regulations is very important. The company’s general counsel and enterprise risk management team (ERM)  may say compliance is the most important thing.  We urge all of our client’s who are involved in regulated industries to review their marketing, sales, account agreements, software applications, and other materials at least annually for compliance with the appropriate industry’s laws and regulations. ERM must now include your vendor’s compliance, especially for financial institutions. Banks and credit unions that deal with vendors in the financial technical applications space ( i.e. “FinTechs”) must be sure that financial institution is purchasing or licensing compliant software. In reviewing agreements with FinTechs, the company must obtain sufficient representations and warranties to protect the company. But be mindful that the regulator will look to the financial institution and not the vendor if the application is not compliant.