The Securities Compliance Podcast Season 2 Episode 6 - The Five Fundamentals of Compliance

Podcast

Securities Compliance Podcast: Compliance in Context

On Episode 6 of Season 2 of the Securities Compliance Podcast: Compliance in Context, host Patrick D. Hayes talks with Jim Downing, the current Chair-Elect of the NSCP Board of Directors and current Chief Compliance Officer for Morningstar, who shares with us his Five Fundamentals of Compliance, and provides some insight into how best to run a compliance program that has multiple business lines and a global customer base.

In the Headlines section, Patrick does another dive into some recent buzz and regulatory activity surrounding cryptoassets, he covers a defense of family offices from a couple key regulators, and finally, he wraps up today’s show with another installment of What’s On My Mind, where in the spirit of this year’s Olympic games, he looks back at a quote from the greatest sprinter of our generation to help provide peace of mind to compliance officers everywhere, no matter the stage in their career. 

Please tune in and subscribe for future episodes at ComplianceInContextPodcast.com.

Headlines 

• Letter from Senator Warren to SEC Chair Gensler

• Expanding the authority of the SEC or the CFTC to regulate cryptocurrency exchanges

• Bloomberg Op-Ed from SEC Commissioner Hester Peirce and CFTC Commissioner Brian Quintenz focused on the regulation of family offices

• Examining the risks involved in the failure Archegos Capital Management

Interview

• How to build a diverse and global compliance program

• Developing a culture of compliance

• Understanding the Five Fundamentals of Compliance

• Identifying and mitigating conflicts of interest in multi-faceted firms

What's on My Mind

• Quote from Usain Bolt on setting the proper expectations

• Understanding and overcoming the challenges in running a compliance program

Quotes 

“One of the first things to do is to check your ego at the door. So when it comes to a global compliance program, I have to realize what I don’t know. And so when we look at, let’s say, Aon or my current position at MorningStar, there were several jurisdictions where I could--in no way--consider myself an expert. So what’s really important there is you make sure you have the right talent onboard.”

“It’s so important to, number one, when you first get there and you first start meeting these executives or heads of sales or product, or operations, or finance, or all the various compartments, is to really take some time and to sit down and to listen to them.”

“Because that’s the advice that we're giving the business on kind of a day-to-day basis you know. When they come to us “Hey what should I do about this?” or “I'm thinking about doing this, what do you think?” And that advice should be drawing from all of these five different fundamentals, you know it should be drawing from where's our where's what's our most risky behavior? It should be drawing from what do our policies and procedures say? It should be drawing from, well, you know, we tested that process and they’re talking about they want to increase the capacity of that and that wasn't very good or hey we had a recent exam or there’s an outstanding issue or whatever it is.”

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About the Securities Compliance Podcast: Compliance in Context

Introducing the Securities Compliance Podcast: Compliance in Context presented by Calfee, Halter & Griswold and the National Society of Compliance Professionals and hosted by Patrick D. Hayes, Senior Counsel and leader of Calfee's Investment Management practice.

Designed as a personal master class for the securities legal and compliance professional, this podcast embodies Patrick’s passion to help you put Compliance In Context™ by combining the technical expertise of industry thought leaders and innovators with the practical experience of doers and key decision makers.

Listeners will find the podcast on Apple Podcast, Google Podcast, Spotify and Stitcher.

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The opinions expressed by guest speakers and panelists during Securities Compliance Podcasts may not necessarily reflect the viewpoints of the attorneys and professionals of Calfee, Halter & Griswold LLP or its subsidiaries or affiliates. Calfee’s educational content is intended to inform and educate readers about legal developments and is not intended as legal advice for any specific individual or specific situation. Please consult with your attorney regarding any legal questions you may have. With regard to all content including case studies or descriptions, past outcomes do not predict future results.