Compliance Industry Tackles Super Bowl
It doesn’t matter if you’re a Giants fan or a Patriots fan: 82% of compliance officers in US banks say they wouldn’t allow an employee to pay for business contacts to attend Super Bowl XLII
New York, NY — February 6, 2008 - A survey of compliance officers at 71 top financial institutions has found that more than four-fifths would prohibit Super Bowl tickets being given or received as gifts to business contacts.
Commissioned by Complinet, the leading provider of solutions that deliver relevant compliance intelligence to industry professionals, the survey highlighted attitudes and understanding of business entertainment policies in relation to gift giving. The results reveal different approaches among compliance professionals with regard to entertainment, with the result that the majority err on the side of caution and would simply say ‘no’.
Whereas gift giving has set guidelines that require attention where gifts are ’in excess of $100’ as outlined by NASD Rule 3060 and NYSE Rule 350, policies around entertainment – where a client is accompanied by an employee of the company - are less defined and more open to interpretation.
The survey asked senior compliance professionals in 71 financial institutions about how they would handle Super Bowl ticket gift-giving with new customers, established customers and prospects. Compliance officers were also asked their views on employees receiving tickets from business partners.
The results reveal a conservative approach and current confusion among compliance professionals with regard to gift-giving and entertainment, with the result that many err on the side of caution and find it easier to to simply say ‘no’. 82% of respondents said they would not allow an employee to offer Super Bowl tickets to prospective or existing customers, including well established customers. Another 15% said they would allow tickets to be given to an established customer but not to a prospect or a new customer.
Just over half of the compliance officers (52%) surveyed said they would not allow an employee to bring a prospect or a client to the Super Bowl, while 15% said they didn't know if they would allow it or not.
Nicole Lefort, head of US Compliance Services for Complinet, said, “The survey highlights the need for busy compliance officers to stay abreast of rules and regulations surrounding business entertainment when popular sporting events are on the horizon.”
Seventy-nine percent of respondents agreed with this assessment, saying they would like to receive business entertainment rules reminders and policy updates in advance of the Super Bowl, the World Series, NBA playoffs and other key events in the US sporting calendar.
Nicole Lefort continued, “In a market where firms are competing for clients it is critical that compliance professionals can balance their firm’s regulatory obligations while being aligned to the business. Complinet’s Policy Manager solution gives compliance professionals the information needed to get that balance right and to make informed decisions.”
About the survey
The survey of senior compliance professionals at 71 U.S. financial institutions was commissioned by Complinet, the leading provider of solutions that deliver relevant compliance intelligence to industry professionals. It was conducted by Complinet in January 2008.
About Complinet
Complinet is the leading provider of dynamic and connected risk and compliance solutions to the global financial services industry.
The company’s solutions minimize exposure to risk by providing the information and technology to track and connect live external events, such as regulatory or sanction changes, with internal policy management and screening activities.
Complinet was founded in 1997 and employs more than 200 people in its offices in New York, London, Sydney and Dubai. Every day, industry professionals in more than 1,600 firms across 81 countries rely on Complinet to provide information, analysis and solutions that help them keep pace with changing regulations.
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