Proactive Compliance Best Practices

1. Proactive Compliance Best Practices Jerry Shafran, CEO and Founder, Compliance Assurance Corporation AICP Gulf States E-Day • June 21, 2013

2. A Proactive Approach to Regulatory Compliance A Reactive Approach to Regulatory Compliance What does a “proactive” compliance program look like? What are the benefits of proactive compliance? How do I ensure a proactive process? What does a “reactive” compliance program look like? What are the risks of reactive compliance? What are the costs of reactive compliance?

3. “If you don't know where you’re going, you'll end up someplace else.” - Yogi Berra, Baseball Legend, Great Philosopher

4. “Someone’s sitting in the shade today because someone planted a tree a long time ago.” - Warren Buffet

5. “That’s like leaping off a precipice and trying to knit yourself a parachute on the way down.” - Kelli Jae Baeli

6. We need a plan! …Be aware of… …Comply with… …Demonstrate compliance… Manual or Technology

7. Compliance Lifecycle Management: A Road Map Identify & Document Regulatory Changes Assess Relevance Translate Regulatory Changes into Business Requirements Communicate Execute Monitor & Validate Report

8. Who am I?

9. Identify & Document Regulatory Changes Why it’s so important. Resources: Trade Websites, Software Solutions, Email Notifications Personnel: Intake Analysts, Paralegals, Attorneys, Compliance Staff Best Practices Audience Question: What imaginative ways do you use to look for Regulatory changes?

10. Assess Relevance to Your Organization Why it’s so important. Criteria: Line of Business, Jurisdiction, Premiums Written, etc. Personnel: Compliance Staff, Paralegals, Attorneys & General Counsels Best Practices

11. Trivia: How many regulatory changes take place in an average year? 1,000-2,000 2,000-3,000 3,000-4,000 4,000+

12. Corporate Battle Cry.. Heard Across This Great Nation You have to do more with less! Translate Regulatory Change into Business Requirements Why it’s so important. Personnel & Resources: Compliance Staff, Business Unit Management, Attorneys, Software/Third Party Solutions Best Practices Could Compliance Drive more Value by Translating Incoming Regs. into Business Requirements?

13. Communicate Why it’s so important. Personnel: Compliance Staff, Business Unit Management Tools: Email, Meetings, Policy Updates, Internal Network, Third Party Software Best Practices Audience Question: Can you discuss your firms perspective on Producer/TPA compliance liability?

14. Execute Why it’s so important. Personnel: Business Unit Employees, NATP’s, Agents, Distribution Network, Compliance Staff Best Practices

15. Monitor & Validate Why it’s so important. Personnel: Compliance Staff (Senior), Business Unit Management, Executive Management Tools: Software/Third Party Solution, Internal Monitoring Controls Best Practices

16. Report Why it’s so important. Personnel: Compliance Staff (Senior), Business Unit Management, Executive Management Tools: Software/Third Party, Internal System Best Practices

17. Compliance Lifecycle Management: A Road Map Identify & Document Regulatory Changes Assess Relevance Translate Regulatory Changes into Business Requirements Communicate Execute Monitor & Validate Report

18. Q&A

19. Jerry Shafran, CEO, Compliance Assurance Corporation Email: jshafran@complyfast.com Web:www.complyfast.com Thank You!