Enterprise Compliance Management for Credit Unions

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Arlene Butler
6 years ago
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1 Enterprise Compliance for Credit Unions Streamline Regulatory Compliance with a Unified Platform to Manage Requirements and Demonstrate Compliance to Regulators

2 Industry Challenge Credit unions are subject to broad regulation that is continuously evolving and the regulatory environment is increasingly rigorous and unforgiving. Against this backdrop, regulatory exams are increasing in frequency and broadening in scope, while enforcement actions and fines escalate and regulators expand their use of analytics and mass data collection to target exams. The consequences of non-compliance can include fines, sanctions, legal fees, and client restitution fees, but also extend to reputational harm. These challenges place pressure on credit unions to identify highly effective and cost-efficient strategies to manage compliance across the enterprise. Reliance on spreadsheets and internally built tools, once adequate for managing compliance activities, is no longer sufficient. Top industry concerns include tracking regulatory changes, complying with new and existing requirements and establishing defensible compliance, which is demonstrable and verifiable for regulators. Firms must gain effective oversight to ensure that compliance obligations are fulfilled, compliance gaps are readily identified and remediated, and strong audit trails that demonstrate compliance are captured and memorialized. CURRENT CLIMATE Growth Environment The return on average assets for federally insured credit unions was 77 basis points in 2016, little changed from 75 basis points in Regulatory Burden Recently regulatory burden on credit unions caused $6.1 billion in regulatory costs, and an additional $1.1 billion in lost revenue, in a single year. 2 Impact of Enforcement Credit unions can face significant non-compliance penalties. Multiple fines of of more than $1 million have been levied against credit unions in the past year. 1) 2016 Annual Report. National Credit Union Administration. 2) Hui, V., Myers, R., Seymour, K, Regulatory Financial Impact Study. Cornerstone Advisors, Inc., Feb RegEd, Inc. All rights reserved.

3 Credit unions ability to provide their... products and services has been significantly impeded in the last several years by a regulatory scheme, which has favored the large banks and nonbank financial services providers that can afford to absorb regulatory and compliance changes. Jim Nussle, CEO, Credit Union National Association 3

4 RegEd Enterprise Platform Capabilities Rich task management capabilities provide visibility into the fulfillment status of compliance obligations to ensure that gaps are closed across the compliance lifecycle. Platform capabilities also include robust workflow management, automatic notifications and exception management, business process automation, compliance surveys and attestation management. Applications present in a common interface, optimizing usability across the application suite. Compliance data is reused across multiple solutions and presented in consolidated dashboards that enable efficient execution of work processes and management by exception. Built-in audit trails, robust reporting and risk profiling drive ready preparedness for regulatory exams and position firm to better withstand the scrutiny of regulators.! Employee Dashboard Enterprise Dashboard RegEd Enterprise Compliance Platform Applications and Solution Suites Policies and Procedures Branch Audit Complaint Regulatory Change Incident Compliance Questionnaires Enterprise Tools Compliance Surveys Calendar and Scheduling Meta-Tagging Predefined and Ad hoc reports Automated Notifications Compliance Portal Task Attestation Platform Capabilities Workflow Document Hierarchy Documentation and Audit Trails Enterprise Reporting Data Exchange, Feeds, Synch Regulatory Agencies Internal Databases and CRM Systems Distribution and Other Partners HR and Expense Systems RegEd, Inc. All rights reserved.

RegEd Solution RegEd s Enterprise Compliance Platform enables credit unions to effectively and efficiently meet compliance obligations and proactively manage their compliance program, including

5 RegEd Solution RegEd s Enterprise Compliance Platform enables credit unions to effectively and efficiently meet compliance obligations and proactively manage their compliance program, including regulatory exams, dramatically reducing the risk of non-compliance and related consequences. The RegEd Platform and its suite of integrated, for-purpose applications deliver extraordinary efficiency and oversight and enable firms to establish consistent, repeatable compliance processes and ensure closed-loop compliance. The platform is fully configurable, scalable and extendable, enabling firms to cost-effectively build on the initial investment as their needs expand and evolve. RegEd s SCORE Risk Control Center presents a single version of the truth, a comprehensive view into the status of compliance requirements, disclosures and required actions at the credit union level or specific to the employee, from RegEd applications and credit union-internal systems. Firms can identify negative trends and exceptions and make timely and informed decisions related to employee activities and compliance actions. Employees benefit from an easy-to-use interface that summarizes their compliance obligations and related requirements. 5

6 REGED SOLUTIONS FOR CREDIT UNIONS Audit Fully plan, schedule, conduct, resolve and report on credit union branch audits. Configure to reflect the credit union s specific organizational hierarchy and business processes. Conduct audits online or offline, customize audit modules and automate specific tasks based on findings. Generate customized findings letters for deficient and non-deficient audits. Complaint Systematically capture and track complaints that are reported directly to the credit union or to regulators. Configurable consumer complaint communication templates facilitate consistent and compliant communications with the credit union s members. Establishes a central repository to capture full documentation related to complaints and their resolution, enabling ready preparedness for market conduct exams. Compliance Questionnaires Workflows can be configured to mirror the institution s hierarchy and operational processes including complex, multi-stage workflows for review and sign-off. Ability to flag key questions, or an entire questionnaire, isolates critical areas for priority compliance review during the attestation process. Provides comprehensive views of status and automatic alerts of deficiencies so that they can be addressed on a timely basis and ensure the compliance loop is properly closed. Incident Efficiently assign and track incidents and manage remedial actions to ensure the timely resolution of incidents. Enterprise reporting provides a unified view of incident and corrective action data by regulation, risk category or business impact. Full incident documentation, along with a full audit trail of the credit union s remedial program, is captured in a central repository, enabling ready preparedness for regulatory exams RegEd, Inc. All rights reserved.

7 Policies and Procedures Enables administration and oversight of the credit union s policies and procedures, including approval, distribution, attestation management and testing program management. Installs a central repository for all policies, enabling the credit union to establish discreet policies based on role, function, department and entity. Captures full documentation on policy approvals, changes, exceptions, attestations, testing and the evolution of policies over time. Integrates with RegEd s Regulatory Change to automatically flag policies that are potentially impacted by regulatory developments. Regulatory Change Monitor and track new and changed regulations. Regulatory changes are delivered with meta tags to facilitate identification of policies potentially impacted by the change. Robust workflow and process management: assign, manage, monitor and validate all activities related to regulatory changes. RegEd Compliance Portal extends compliance oversight to non-affiliated third parties. 7

8 About RegEd RegEd is a leading provider of regulatory compliance technology solutions with relationships with more than 400 enterprise clients including banks, broker-dealers and insurance companies. Established in 1994 by former regulators, the company is a recognized industry authority and has created the standard of excellence for rule-based, workflow-enabled and content-driven compliance automation. RegEd solutions drive new levels of operational efficiency and enable firms to costeffectively comply with regulations and mitigate risk Gateway Centre Blvd., Suite 200 Morrisville, NC sales@reged.com

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