PowerComply

Setting Limits (Caps)

Firms have many goals in tracking non-cash compensation. Some of the first objectives that come to mind are compliance initiatives to ensure that internal associates do not give and receive gifts that surpass the firm's Written Supervisory Procedures and regulatory mandates. In addition to compliance needs, firms may also want to set and track budget limitations.

For example, a firm has a $100 limit on all gifts given to individuals outside of the firm. An internal rep may not be violating the firm's policy by giving $95 gifts to 50 people at the same firm, but he may be exceeding his budget limits.

PowerComply tracks both compliance and budget limits. The system allows you to set various limits within your broker/dealer by:

  • Business unit, region, department, etc.
  • Job title or code, such as supervisor versus non-supervisor, financial advisor versus sales assistant, etc.
  • By individual, such as for specific executives or in individual cases
Within each employee grouping, firms may customize dollar limits in eight (8) ways:

Gifts

  1. Amount available for each INTERNAL PERSON to GIVE in gifts annually. This number is budget driven, as firms may want to limit the amount of money an individual can spend in a given year.
  2. Amount available for each INTERNAL PERSON to RECEIVE in gifts annually. This number is compliance driven and allows you to set limits and identify any amounts Compliance deems to be excessive.
  3. Amount available for each OUTSIDE PERSON to GIVE to all internal employees at your broker/dealer in aggregate. This is compliance driven
  4. Amount available for each OUTSIDE PERSON to RECEIVE in aggregate from all employees within your broker/dealer annually typically thought of as the $100 rule. This is compliance driven and is historically the most challenging information to track.

Entertainment

  1. Amount available for each INTERNAL PERSON to GIVE in gifts annually. This number is budget driven, as firms may want to limit the amount of money an individual can spend in a given year.
  2. Amount available for each INTERNAL PERSON to RECEIVE in gifts annually. This number is compliance driven and allows you to set limits and identify any amounts Compliance deems to be excessive.
  3. Amount available for each OUTSIDE PERSON to GIVE to all internal employees at your broker/dealer in aggregate. This is compliance driven.
  4. Amount available for each OUTSIDE PERSON to RECEIVE in aggregate from all employees within your broker/dealer annually - typically thought of as the $100 rule. This is compliance driven and is historically the most challenging information to track.

Setting Limits

Firms may choose, at each business unit level (department, region, etc.) how to enforce limits. Following are your different options:

  • Hard Limit: Gifts that exceed the limit set by compliance management cannot be entered into the system. At the time the employee tries to enter the information, a pop-up window will appear informing him that his entry exceeds the limit and is not permitted.
  • Soft Limit: Gifts that exceed the limit set by compliance management can be entered into the system. However, a warning pop-up window notifies the individual that the gift has exceeded the limit. Compliance may choose to have an automatic email generated to Compliance at this time, notifying the compliance team of the limit violation entry.

Attestations

With each entry, firms may elect to have a pop-up window appear asking individuals to attest that the information entered is accurate and complete. An example of this language is: "By clicking 'Submit,' you are certifying that this information is accurate and complete."

Periodic reports are sent proactively to management summarizing the activity by department, division, etc. Reports are also available 24x7 via the Internet.