Proactive Compliance Best Practices
AICP Gulf States E-Day • June 21, 2013
Jerry Shafran, CEO and Founder, Compliance Assurance Corporation
A Proactive
Reactive Approach
ApproachtotoRegulatory
RegulatoryCompliance
Compliance
 What does a “proactive”
“reactive” compliance
complianceprogram
programlook
like? like?
look
 What are the benefits
risks of reactive
of proactive
compliance?
compliance?
 How
Whatdo
areI ensure
the costs
a proactive
of reactive
process?
compliance?
“If you don't know where you’re going,
you'll end up someplace else.”
- Yogi Berra, Baseball Legend, Great Philosopher
“Someone’s sitting in the shade today because
someone planted a tree a long time ago.”
- Warren Buffet
“That’s like leaping off a precipice and trying to
knit yourself a parachute on the way down.”
- Kelli Jae Baeli
We need a plan!
…Be aware of…
…Comply with…
…Demonstrate compliance…
Manual or Technology
Compliance Lifecycle Management: A Road Map
I. Identify & Document Regulatory Changes
II. Assess Relevance
III. Translate Regulatory Changes into Business
Requirements
IV. Communicate
V. Execute
VI. Monitor & Validate
VII. Report
Who am I?
Identify & Document Regulatory Changes
 Why it’s so important.
 Resources: Trade Websites, Software Solutions, Email
Notifications
 Personnel: Intake Analysts, Paralegals, Attorneys,
Compliance Staff
 Best Practices
Audience Question:
What imaginative ways do you
use to look for Regulatory
changes?
Assess Relevance to Your Organization
 Why it’s so important.
 Criteria: Line of Business, Jurisdiction, Premiums
Written, etc.
 Personnel: Compliance Staff, Paralegals, Attorneys &
General Counsels
 Best Practices
Trivia: How many regulatory changes take place in
an average year?
a) 1,000-2,000
b) 2,000-3,000
c) 3,000-4,000
d) 4,000+
Translate Regulatory Change into Business Requirements
 Corporate
Why it’s so important.
Battle

Cry.. Heard Across
Personnel & Resources:
Compliance
Staff, Business
This Great
Nation
Unit Management, Attorneys, Software/Third Party
Solutions
You have to do more with less!
 Best Practices
Could Compliance Drive more
Value by Translating Incoming Regs.
into Business Requirements?
Communicate
 Why it’s so important.
 Personnel: Compliance Staff, Business Unit
Management
 Tools: Email, Meetings, Policy Updates, Internal
Network, Third Party Software
 Best Practices
Audience Question:
Can you discuss your firms perspective on
Producer/TPA compliance liability?
Execute
 Why it’s so important.
 Personnel: Business Unit Employees, NATP’s, Agents,
Distribution Network, Compliance Staff
 Best Practices
Monitor & Validate
 Why it’s so important.
 Personnel: Compliance Staff (Senior), Business Unit
Management, Executive Management
 Tools: Software/Third Party Solution, Internal
Monitoring Controls
 Best Practices
Report
 Why it’s so important.
 Personnel: Compliance Staff (Senior), Business Unit
Management, Executive Management
 Tools: Software/Third Party, Internal System
 Best Practices
Compliance Lifecycle Management: A Road Map
I. Identify & Document Regulatory Changes
II. Assess Relevance
III. Translate Regulatory Changes into Business
Requirements
IV. Communicate
V. Execute
VI. Monitor & Validate
VII. Report
Q&A
Thank You!
Jerry Shafran, CEO, Compliance Assurance Corporation
Email: jshafran@complyfast.com
Web: www.complyfast.com