FAQ Page

I already have a Chief Compliance Officer. How can InnReg help my company?

Most of our clients employ an in-house CCO and some compliance staff to manage ongoing compliance activities.

Our job is to partner with their compliance team when they need specialized expertise or additional bandwidth. This tends to happen when they enter a growth phase, launch a new product in a regulated sector, or start to build (or scale up) a more efficient or more effective compliance platform.

We help them minimize risk, create efficiencies, and save substantial time and money, by recommending industry best practices and implementing a state-of-the-art Compliance Stack. Our solutions are always technology neutral, and always in our clients’ best interests.

We’re flexible as we work to meet your needs. We can implement an ad hoc project, or provide a fully managed Outsourced Compliance Management Solution. We’re here to support your compliance function in any way that you need.

Will InnReg replace my legal counsel?

InnReg is not a substitute for your own legal counsel. We do not provide legal advice.

With that said our clients definitely benefit from our insider knowledge. In fact, our founder was a lawyer by trade before he decided to specialize in compliance issues impacting fintech start-ups. One of the ways we support our clients is by helping their CCO more effectively manage the legal review of complex regulatory issues. We start by clearly defining the project scope and objectives, and then we interface with the legal team using their legal language. We ask the right questions of the right lawyers. We save our clients time, money and headaches. And help them avoid unnecessary delays and costs.

Read more here: https://www.innreg.com/blog/compliance-consulting

I am not sure I need your help. How can I find out more?

Reach out to schedule a Complimentary Consultation via telephone, video conference, or in-person meeting.

We’ll ask a lot of questions and listen carefully until we understand your business needs. If we believe InnReg can improve your compliance or back-office systems in a cost-efficient way, then we’ll be happy to prepare a statement of work with project scope, costs and timeline.

This Discovery Meeting is free, so there’s nothing to lose and everything to gain.

What if I’m a fintech angel investor, VC or accelerator? How can you help me?

There are several ways InnReg supports angel investors, VCs and accelerators.

We’re here to help when you have a company in your portfolio that needs to develop a compliance and/or back-office operations platform to support its product or service. When you need a trusted compliance resource to help you assess the regulatory aspects of a potential fintech investment. Or when you want to minimize the regulatory risk associated with a current investment or a potential new investment.

We can help you with these issues, and a whole lot more. We’re one of the only regulatory compliance consultants with deep expertise in the fintech arena, especially early stage start-ups.

What is a compliance stack?

A major challenge for most companies in a regulated industry is how to create an integrated system of compliance and operations process workflows when each function is fueled by separate, specialized technology and software. We call this integrated system the Compliance Stack, and its job is to seamlessly support a superior user experience for customers, employees and strategic partners.

Building this machine can be a daunting task, and it’s easy to end up with the wrong combination of technology. The result could be a solution that doesn’t suit your business model, or one that’s packed full of expensive and unnecessary features. So it pays to get it right.     

We invite our clients to leverage our expertise in order to take the guesswork out of this process.

We can manage the entire development, implementation and training for you as an outsourced solution. Or we can advise you on how to:

  • Choose the best APIs for your business goals and regulatory requirements
  • Minimize regulatory impacts on user experience and operational efficiency
  • Train your team to manage compliance and operations workflows before, during and after your product goes live
My company is not regulated. Do I still need a compliance specialist?

If your company is in the fintech arena, then you will most likely need to establish one or more partnerships with banks or other regulated entities. These institutions are governed by numerous laws and regulations, which means they apply a high level of scrutiny to every potential new partner.

InnReg will help your company successfully negotiate these reviews, by auditing your compliance system and ensuring you meet all their regulatory requirements before the first conversation. We have a stellar record when it comes to preparing our clients for successful partnerships with regulated financial institutions, because we leverage 10+ years of experience in this arena. It’s not our first rodeo.

My company is launching a disruptive fintech product. Should we become regulated?

This is one of the first questions many of our new clients ask, but it’s just one of the tough questions we help our clients answer before they launch an innovative new product in the fintech space. We use 10+ years of experience to determine the most efficient regulatory set-up for their program. It all depends on product design, business model and marketing strategy.

Our job is to make sure our clients get the maximum functionality and revenue growth opportunities, while keeping compliant with regulatory requirements.

If you’re wondering whether or not you’re asking the right questions (or missing major opportunities), then reach out for a Complimentary Consultation.

What if I’m a bank or an established financial institution? How can you help me?

We work with a variety of established financial institutions (e.g., commercial bank, broker-dealer investment advisor, lender).

There are three ways that we typically support these groups. First, if they are establishing a new partner relationship with a fintech startup, then we help them assess and enhance their new partner’s compliance capabilities. Second, if they are planning to develop a new fintech product or service, then we help them optimize product design and maximize revenue potential while adhering to regulatory guidelines. Third, if they have an international footprint and want to launch a new fintech line of business in the United States, then we help them understand how to maneuver the local regulatory environment without setting off any warning lights.

Click here for an overview of our Fintech Compliance Expertise

There are a million compliance consultants out there. What makes InnReg different and better?

We launched our business in 2013 with a focus on early-stage companies in the fintech arena. These companies are disrupting the market and driving innovation with limited budgets, which makes it a great place to develop a problem-solution mindset.

Most compliance managers are very good at identifying problems, but not so good when it comes to formulating effective, cost efficient solutions.

We’re great at showing our clients where the obstacles and pitfalls are lurking, and how to manage around those obstacles while making sure the regulators are comfortable with your approach.    

Before launching InnReg, our founder was the Chief Compliance Officer at TradeKing and Zecco. These were startup brokers he helped launch and merge into the 6th largest online BD in the US with 500,000 customers and $2.6 billion invested assets. Ally Bank acquired the combined company for $300M in June 2016.  

Since our inception in 2013, we have helped launch technology-focused broker-dealers, lenders, investment advisors, and other disruptive companies in the fintech space.

We have managed the process to obtain regulatory clearance for groundbreaking products and services or to overcome regulatory enforcement challenges. We have also designed workflows to ensure a compliant user experience and back-office processing, including:

  • The first broker-owned social networking platform, where 300,000 users publish validated details about their trading activity to other members
  • A browser extension that recognizes stock symbols on third-party websites (e.g., Yahoo Finance) and opens a pop-up window for one-click order entry
  • Gift certificates for stocks
  • Brokerage APIs for deployment on affiliates' sites
  • Currency based trading in fractional shares using a mobile device

The scope of our engagements varies from narrowly-defined ad-hoc projects to long-term partnerships where we act as an outsourced provider of operations and compliance management services.

Our compensation structure is designed to accommodate the financial constraints of early-stage clients, and to align our incentives with those of founders and investors.

I know you’re the experts. But aren’t there cheaper alternatives out there?

When it comes to compliance in a regulated industry the “cheap option” is often a false economy with disastrous and expensive results. Doing the right things, right, the first time is usually the most economical route.

The majority of our new clients become long-term partners, because our programs and services deliver measurable ROI to their bottom line.

Most compliance consultants are very good when it comes to traditional financial services business models. They’ve been part of a 100+ member compliance team at a mammoth Wall Street bank, or they’ve worked for a few years after college at a regulatory agency. They can deliver a boilerplate procedures manual. Tell you a new product will likely make regulators nervous. Or point out which marketing strategies aren’t allowed.

InnReg is different. We never point out a problem without offering a solution.

We’ll advise you on how to innovate and remain competitive, while working within the compliance boundaries. We’ll help you build an efficient, effective and scalable compliance platform that accommodates your program needs during beta testing, product launch and market expansion. We’ll help you build a digital onboarding system that automatically processes thousands of daily signups. We’ll help you implement a transaction monitoring platform that addresses unique fraud prevention needs. And a whole lot more.

We’ve weathered the economic ups-and-downs of a volatile economy for more than 10 years. In fact, we cut our teeth on startups in the fintech arena. All of which gives you every confidence we will replicate these results for your program as well.

How much do your services cost?

Cost/Benefit Analysis

InnReg was launched to support early-stage startups with completely outsourced and end-to-end compliance solutions. In addition, we can provide specific compliance services as a way to augment clients’ existing compliance teams with specialized expertise that they do not have in-house. 

We understand the discipline of cost/benefit analysis, and we approach every engagement with cost savings and cost avoidance in mind.

Cost Savings

By offering a fully outsourced solution, InnReg gives you the benefits of an expert in-house compliance department with significant savings. You get experts who focus specifically on the compliance challenges of digital innovators in financial services. Similar savings are also generated by using our solution in Outsourced Supervision.

How much does an in-house team cost? Averages vary based on the metro area, but take a look at some representative data from Robert Half:

New York

Chief Compliance Officer – $405,694

Compliance Manager – $229,155

Compliance Analyst (x2) – $335,373

Total – $970,222

SF

Chief Compliance Officer – $407,137

Compliance Manager – $229,971

Compliance Analyst (x2) – $336,566

Total – $973,674

LA

Chief Compliance Officer – $381,150

Compliance Manager – $215,292

Compliance Analyst (x2) – $315,084

Total – $911,526

Chicago

Chief Compliance Officer – $358,050

Compliance Manager – $202,244

Compliance Analyst (x2) – $295,988

Total – $856,282

Miami

Chief Compliance Officer – $306,075

Compliance Manager – $172,886

Compliance Analyst (x2) – $253,022

Total – $731,983

Philadelphia/National Median

Chief Compliance Officer – $332,062

Compliance Manager – $187,565

Compliance Analyst (x2) – $274,504

Total – $794,131

With InnReg, you tap into resources with these skill sets without the salaries and overhead of an internal team receiving benefits and bonuses. Not only that, but you only use the services you need from niche experts such as KYC and AML specialists, fraud analysts, and more – tailored to the needs of your business. 

Cost Avoidance

If you are a startup:

By developing a regulatory strategy and compliance program from the beginning, integrated within your overall business strategy, you also mitigate the risk of enormous costs. Imagine yourself 18 months after launch, now facing the costs of not getting it right the first time. You now have to contend with regulatory inquiries, possible regulatory fines, legal costs, potential personal liability, and then remediation. 

If you are already established and growing:

Do not let your commercial growth outpace your compliance capabilities. It can be a difficult and costly mistake if issues arise that you are not equipped to mitigate or handle. Our solutions provide turnkey expertise and processing capacity.

Fines or penalties alone can be extremely challenging for smaller companies to absorb.

  • The Securities and Exchange Commission assessed $3.945 billion in disgorgement and penalties across 821 enforcement actions in fiscal 2018 - an average of over $4.8 million per action. (Source: SEC Division of Enforcement, 2018 Annual Report). 
  • The Federal Trade Commission ordered obtained 114 court orders for nearly $563 million in consumer refunds – an average of almost $5 million per case. (Source: 2018 FTC Annual Report on Refunds to Consumers)
  • Industry sources report that the average Consumer Financial Protection Bureau Fine is $60.3 million. (Source: ValuePenguin)

The smart advice: Don’t put yourself in that position in the first place.

For a more detailed cost/benefit analysis tailored to your firm, contact us today.

You already manage multiple clients. Do you have enough bandwidth to meet my needs?

We are structured to fulfill 100% of each client's compliance needs, regardless of whether this is an ad hoc project or a fully managed outsourced compliance department. We will dedicate highly qualified administrators to manage your daily compliance processes. Or provide proven C-suite experts to lead your compliance function as a member of your executive team, up to and including being registered as CCO with your industry regulator. We always accommodate your business needs and your budget.

We’re more than just manpower. Our approach is to enhance the capability of your executive team with subject matter expertise from 10+ years of experience supporting the ideation, development and launch of innovative fintech companies and financial institutions.

One of the primary benefits of working with a multi-client practice is the fact that we gain unique exposure to the latest solutions and best practices across multiple business categories. All of our clients benefit from this omni-category view, because we apply what we learn from one category to another category. So everyone wins.

Why is INNREG headquartered in Miami, FL? Instead of a technology zone like Silicon Valley?

We established a home base in South Florida when our founder was helping to launch TradeKing, and it soon became clear this was the ideal location to house a fintech back office operation.

Miami is emerging as a new global hub for technology and financial services, especially international banking and disruptive startups. The business-friendly political environment (no state income taxes in Florida) coupled with the low cost of living means Miami is attracting more innovative companies and more talent each and every week. It’s the perfect place to establish an operations and service center to complement your Silicon Valley technology hub. And we make it easy, effective and cost efficient by providing you with a fully managed outsourced solution.  

Our operations are 100% digital and cloud-based, so your team enjoys anytime/anywhere access regardless of physical proximity. Our human team is distributed nationally and internationally to mirror your national or global footprint. And we schedule at least 4 onsite visits each year to locations like Los Angeles, New York City and San Francisco. Your team and your clients are everywhere, and so are we.

An added bonus is the open access to the best available fintech compliance experts, again without regard to physical location.

Reach out today for a Complimentary Consultation.

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