Regulatory Alerts2020-11-10
Compliance Ratings
Regulators assess an institution's overall compliance with fiduciary laws, regulations, and standards of conduct to evaluate risks related to account administration and conflicts of interest. The rating framework examines adherence to governing instruments, the adequacy of internal policies, and the effectiveness of systems in identifying and controlling self-dealing and other conflicts. A five-tier rating scale is applied, ranging from strong compliance with isolated technical violations to critically deficient practices involving flagrant disregard for beneficiary interests and imminent monetary threats.
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