Compliance has a role with early M&A discussions (FinancialPlanning)

There are a myriad of compliance considerations that emerge when money management firms are in the merger and acquisition mode. Amy Lynch, FrontLine’s Founder and President, recommends that compliance and risk management be brought in at the beginning of the process. The ramp up of mergers and acquisitions within the wealth management industry has not been lost on the SEC, and a recent Risk Alert issued by the regulator points to a lack of compliance coordination to ensure proper supervision, controls and vendor oversight at branch offices. Ms. Lynch comments that the SEC is warning firms not to lose sight of compliance requirements during a merger or acquisition. She adds that by giving the CCO a seat at the table when business decisions are being planned, it goes a long way toward addressing many of the issues raised by the SEC’s industry alert. See FinancialPlanning (guest account or subscription required), “M&A boom drives SEC concerns about planners’ branch offices”