In the financial services sector, tracking employee compliance with licenses, registrations, continuing education, and more is a complex task.
According to MCO, while traditional methods such as spreadsheets may seem cost-effective and easy, managing the various license and education renewals across a company’s workforce is difficult.
The early stages of employee onboarding reveal flaws in manual systems, as new hires cannot start work without the right licenses, leading to a major waste of time and resources.
This manual approach often leads to costly delays and sometimes regulatory penalties. As one example, one financial institution was fined $1.25 million by FINRA for delays in background checks.
Ensuring that new hires meet all requirements is just the beginning. Maintaining employee qualifications, including periodic renewals and continuing education, is an ongoing process made even more complicated by multi-state and global operations.
Regulatory requirements vary across regions, making the compliance process more complex: for example, a UK broker was fined $150,000 by the US National Futures Association for failing to comply with testing regulations, highlighting the risk of non-compliance across jurisdictions.
Ongoing tracking doesn’t end with making sure entitlements are up to date. Companies also need to monitor ad-hoc changes, such as address or job updates, throughout the year. Sinead Egan, product manager at MCO, points out the difficulties companies face when relying on outdated methods for updating and tracking employee data. Without efficient technology, important updates can be delayed or missed, leading to compliance gaps and fines.
To effectively comply, companies must manage multiple components, including tracking and renewing licenses, registrations, and exams, and ensure everything is up to date across all jurisdictions. When companies use different tools, inefficiencies and oversight gaps create challenges. Automation can streamline these processes, allowing employees to more effectively manage their compliance responsibilities and allowing compliance teams to focus on strategic tasks rather than administrative follow-up.
Integrating compliance technology with HR systems like Workday can help reduce errors and duplicated work. A unified platform that manages licenses alongside other compliance activities provides a comprehensive view of employee compliance status and enables timely intervention for violations or discrepancies.
This integrated approach not only simplifies data management, but also strengthens your ability to proactively identify and address compliance issues.
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