Compliance professionals often get cast into the perpetual role of “bad guys” as they serve as primary, detail-centric rule enforcers on trades. As they shut down trade requests based on potential rule violations, they come under constant peer pressure to come up with exceptions or accommodations. They feel both the social and professional pressure to compromise, but they need to do so in a way that does not leaves their team feeling vulnerable to potential firm liability.
This issue came into focus at a panel discussion at this year’s National Society of Compliance Professionals Conference at the Gaylord National Hotel in Maryland. Panelists addressed head on this compliance stigma and why it so intensely impacts compliance teams. When hit with negativity, compliance professionals have to remember how valuable they are, ensuring that trades that could jeopardize the company do not go through. I came to understand how they can feel pressured to allow exceptions for co-workers to preserve their reputation.
The panel then focused on potential solutions to burst the negativity bubble surrounding compliance. Documentation for changes worked out with colleagues is key. Any accommodation request, whether by a trader or a client, creates vulnerability. So as compliance reaches accommodations, the team needs to keep a well-documented track record as often these changes get confirmed in emails, texts or other documents outside of the rule library. All these new accommodations or workflows need to be directly traced back to a requirement. This prevents against future rule violations.
Compliance should be proud of the responsibilities they uphold for their company and colleagues, and implementing these peer-to-peer strategies can diminish the negativity surrounding it.
