We’re excited to announce ACA’s new political contributions monitoring functionality in ComplianceAlpha®'s Employee Compliance Solution.
With the charged political climate surrounding the 2020 U.S. election cycle, employees’ political activity has likely increased – and will likely remain high in future elections. According to CNBC, the percentage of small-dollar donations ($200 or less) in the 2020 election has increased by 14% since 2016. This increased political spending can mutate into an increased risk of conflicts of interest related to political contributions, which may lead to enforcement action and regulatory fines if your firm is found to be in violation of relevant pay-to-play regulations. ACA calls this phenomenon – where interrelated risks interact and evolve to create both new risks and opportunities – RiskMutation™.
Regulatory technology (RegTech) and outsourcing/managed services are two strategies that can help firms manage RiskMutation through improving the efficiency, resilience, and scale of their programs. ACA's new political contributions monitoring technology is designed to provide our clients with an efficient and cost-effective solution for identifying and investigating potential conflicts of interest while meeting their regulatory obligations under relevant pay-to-play regulations, including the U.S. Securities and Exchange Commission’s (SEC) Rule 206(4)-5.
Key features and benefits include:
- A single location for identifying, tracking, and reviewing political contributions by covered associates or employees and/or household members
- Automated searches performed against a centralized dataset of over 300 million political contributions from public FEC, state, and local databases
- Smart Scoring to help reduce false positives by highlighting likely matches using contributor and employee data
- Searches include address history in addition to current address
- Optional support from ACA’s managed services team for reviewing results and providing recommendations for items of interest that may require further investigation
This feature is included as part of the Employee Compliance Solution Professional and Enterprise tiers. It can be provided to non-ComplianceAlpha clients as a managed service delivered through ComplianceAlpha.
To learn more about ACA's Employee Compliance Solution, download the product sheet here.
- White Paper: The Future of Risk and Compliance in the Age of RiskMutation
- Blog Post: The 2020 U.S. Election is Here: How is Your Firm Monitoring Political Contributions and Government Relationships?
For More Information
If you are a current Employee Compliance solution client, please reach out to your ACA Customer Success representative for more information about this new feature.
To request a demo or meeting, contact us here.