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E-mail & Instant Messenger(IM)
During a normal audit the SEC requests approximately 33% to 50% of the email from the Adviser for a specified period of time, as generally required by the 37-page SEC Pre-Exam Questionnaire.
The SEC cites that traditional email systems (Outlook, Lotus Notes, etc.) fail to place any internal control structure around the indexing, sorting and filing of email.
Therefore, the new risk-based examination requires the SEC to conduct an extensive review of email in light of the risks associated with lost, misplaced, misfiled, deleted or altered correspondence.
TurboCompliance®
re-engineered the processing of email and IM by installing a comprehensive internal control structure around the entire process, including automatically:
- Indexing, Sorting and Filing email into the appropriate Correspondence and, if appropriate, the Complaint File
- Monitoring outgoing communications for incompliant words and phrases as well as incoming messages which rise to the level of a complaint
- Detecting action items, preventing incompliance
- Reporting up the chain of command
- Documenting any incompliance on the supervised person’s Compliance ScoreCardSM
- Sanctioning the supervised person per the CCO’s rules, formulas or schedules
- Conducting Interim Audits
- Preparing the Annual Review required by Rule 206(4)-7.
Retention (Rule 17a3 and 17a4)
TurboCompliance
eliminates the SEC examination risks associated with lost, misplaced, misfiled, deleted or altered email by:
- Automatically identifying, indexing and sorting all incoming and outgoing communications
- Automatically filing each message in the proper correspondence file for that particular contact or
customer/client (located in the Contact or Client Management module, respectively).
- As a third party, maintaining all communications for the required period of time, in an un-editable format.
These measures substantially reduce the amount of time the SEC should require to conduct this part of their examination.
Supervision (Rule 3010, 3012 and 3013)
The TurboCompliance
Platform provides several unique functions to automate the supervision of email
that relates to the Advisers business activities, including:
- Automated classification of email as “business”, “personal” or “attorney/client privileged”
- The ability to apply a different compliance-rules engine based
upon the classification of email
Automated monitoring of outgoing communications marked “business” for incompliance words and phrases, by:
- Preventing the transmission of the email containing incompliant words/phases (“promise”, “guarantee”, etc.)
- Reporting the act of incompliance up the chain of command
- Documenting all incompliance on each person’s Compliance ScoreCardSM
- Sanctions each member of the firm based upon the CCO’s customized compliance rules, formulas, schedules
- Preparing your Annual Review and satisfying all Recordkeeping requirements
Automated monitoring of all incoming communications by:
- Alerting the CCO to any messages which rise to the level of a complaint
- Filing the communication in the appropriate Complaint File
- Documenting the incompliance on the appropriate Compliance ScoreCard
- Sanctioning the employee per the CCO’s schedule
- Evaluating the materiality, placing the same on your Annual Review upon breach of the appropriate threshold
The ability to automatically conduct interim and annual audits of your electronic communications,
based upon your CCO’s interim or mock audit parameters.
Consequently, TurboCompliance provides a 360 degree internal control structure around your electronic
communication and CRM processes, providing the “culture of compliance” expected by the SEC.
TurboCompliance delivers a complete 3012 and 3013 supervisory control structure.
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