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Why Do I Need a Compliance Management System?

Joy Gilpin
Nov 27, 2013

I wanted to explore a question that my team frequently gets: Why do I need a Compliance Management System? While there are many strong reasons why you need one, there is probably one critical reason … because the Consumer Financial Protection Bureau (CFPB) says so. For all supervised entities, the expectation is to have a true Compliance Management System in place that is appropriate for the size and scale of your organization. This is emphasized in several documents, including the Supervision and Examination Manual, which gives you guidance on an examination, as well as the recently released 2013 CFPB Dodd-Frank Mortgage Rules Readiness Guide which includes a questionnaire to evaluate your current progress complying with all of the new mortgage rules. The CFPB has come out and stated pretty clearly that in their opinion, weaknesses in a Compliance Management System can really result in violations of law or regulations, each of which are associated with harm to our consumers. So then, what is a Compliance Management System? While there are many components that go into a true Compliance Management System, essentially it is a program designed to ensure that the policies and practices that are implemented in your business operations are in full compliance of federal financial consumer law. That’s the big picture that we are trying to get to. When you think about it, a Compliance Management System, when properly structured, establishes compliance responsibilities. It then communicates those responsibilities to employees and associates. Also, it gives you a vehicle to incorporate policy and procedure into business process. Finally, it creates a responsibility for meeting those requirements through internal policies and creates ownership or accountability by ensuring that those acts, policies, and practices are carried out and that legal requirements are met. This process is validated by regular and scheduled review, and, as needed, implementation of revisions for corrective action. It’s all part of a larger working solution in which each piece supports the overall objective of adherence with consumer financial law and regulation, as well as consumer transparency and advocacy. Ready to get started? The AllRegs Compliance Management System can help. Our comprehensive compliance solution can help you with the following features: ►Audit all policies and ensure that you have the correct policies in place ►Policy authorship as needed ►Deliver training on policies ►Archive and track what policies were live at anytime ►Assess and test staff on the policies after they read them ►Conduct training for your Board of Directors and all employees as applicable ►Provide one system of record for all reports For a personal consultation on your AllRegs Compliance Management System needs, call your dedicated account executive at (800) 848-4904 or visit and click on “Compliance Management System” to request a demo. Or, get more information about AllRegs and the full suite of products and services by visiting today. Joy K. Gilpin is professional services manager with AllRegs. She may be reached by phone at (800) 848-4904.
Nov 27, 2013
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