Glossary

Regulatory Compliance Solution

Companies in certain industries, especially finance, legal and insurance, are bound by a number of strict regulatory guidelines designed to keep markets running smoothly and to protect consumers, investors and the companies themselves. Regulatory compliance solutions help companies ensure that they are following the rules. 

 

What is Regulatory Compliance?

Regulatory compliance means following all applicable laws, guidelines and regulations. These requirements generally depend on the industry in which a company operates as well as its geographic location. For example, the financial industry in the United States is regulated by the SEC, the  Dodd-Frank Act and the Sarbanes-Oxley Act, and the healthcare industry is bound by HIPAA regulations. In the EU, the European Banking Authority is responsible for protecting the financial stability and the integrity of the European banking sector.  

 

Different regulatory bodies and legislation may have their own specific requirements that companies must adhere to. In many cases, regulatory compliance includes the capturing and archiving of business-related communications. 

 

The Importance of Regulatory Compliance 

Among the many reasons why regulations are put in place include the protection of  consumers from fraud and businesses from lawsuits. Obviously, businesses need to comply with these regulations in order for them to be effective. When a business operates fully within the regulations, they can rest assured that they are not unwittingly engaging in any unlawful activity. 

 

Being known as a compliant company can also help with brand perception and customer loyalty as many consumers want to know that the companies they are doing business with are trustworthy and transparent. 

 

The Risks of Non-Compliance

 

If a company is not compliant with the regulations to which it is bound, they may face any of the following consequences:

 

  • Fines and penalties – companies can be charged financial penalties that can run as high as millions of dollars in certain cases. 
  • Disruption to business – businesses can be forced to shut down temporarily while potential non-compliance is being investigated. They can also be banned from bidding on government contracts for a period of time.
  • Reputational damage – consumers will be unwilling to work with a company that has a reputation for not complying with regulations or other legal woes. It can also impact the hiring of employees.
  • Loss of revenue – of course, business disruptions and reputational damage combined with financial penalties will all lead to a loss of revenue and profit. 

 

What is a Regulatory Compliance Solution 

 

In order to prevent either accidental or purposeful noncompliance, companies turn to regulatory compliance solutions. These solutions include the policies that companies implement to ensure that all employees and activities are compliant as well as technological tools that enable the compliance policies to be enacted. 

 

A solid regulatory compliance solution will include:

 

  • A way to stay updated on any changes to the regulatory landscape including the passage of new laws.
  • A code of conduct to teach employees to ensure that their business practices are all in compliance with regulations.
  • Documented compliance policies that everyone in the company has access to. 
  • A suite of technological tools to enable the automation of compliance related activities.

 

How LeapXpert Can Help Ensure Regulatory Compliance 

 

LeapXpert’s communication platform federates, orchestrates, and unifies all electronic and voice messages, providing companies with fully compliant and unparalleled visibility into data from all communication channels. The system easily integrates with other business systems, providing a complete regulatory compliance solution.