We’re proud to announce that we are launching Expert Network, the first of a suite of tools we are developing to help compliance officers manage an increasingly difficult regulatory environment combined with a proliferation of electronic records.
A better way to vet experts
A common step in the diligence process before an investment is to conduct interviews with industry experts, who can help investors understand the product, industry, and competitive field. Investment firms must be careful to track who they speak with, and at what frequency, to comply with SEC regulation intended to prevent insider trading. The current status quo often involves manual triangluation between spreadsheets, email chains, and an investor’s memory of the topics discussed. The SEC recently published a risk flagging deficiencies in these types of processes, which we dissect in our blog post.
Our first product is a workflow system that assists compliance officers and investors in processing expert requests while also storing the documentation required to demonstrate compliance.
An investor submits a request to speak with an expert. On the backend, the Expert Network product compiles data, including how many times the firm, or investing team, has spoken with this expert over the last year, and presents this information to the compliance officer, who can then approve, decline, or ask for additional clarification. This exchange, including what information was available about the expert at the time of evaluating the call, is all stored within the Modern Diligence platform and can be conveniently downloaded by compliance team members.
Modern Diligence is compatible with all major expert networks
There are many expert network platforms, including many that have emerged very recently. Modern Diligence will automatically match a given expert across any network, ensuring that your compliance rules can be followed regardless of what network hosted the connection.
Modern Diligence can also standardize MNPI-related training and onboarding according to your firm needs, by requiring all experts, regardless of network, to complete training.
Solve your expert network compliance process today
If you’re a Chief Compliance Officer at an investment firm, or otherwise deal with Expert Network MNPI workflows at an investment firm, schedule a demo today.