To hire or to outsource – a compliance consideration

first_imgI’ve had some great conversations with credit unions this week regarding their consideration to hire knowledgeable compliance staff, or to outsource many compliance functions to third party experts. Either option could be an appropriate choice depending upon the credit union.In pre-internet days, it was more practical for a credit union to hire or train a staff member to ensure compliance requirements were being met. This was partially due to the physical presence of the individual at the credit union, and partly because the compliance burden wasn’t so significant. These days the location of the individual is not nearly as critical, however many credit unions prefer the comfort which goes along with having this knowledge on staff. It’s easy to walk down to Bob’s office to run a compliance question past him. And, it’s easy for Sally to grab a file from the filing cabinet to review disclosures. For less complex credit unions, with adequate means, this may be a great option. After all, nobody knows the credit union’s goals and operations better than its own employees, right?Unfortunately, as regulatory compliance rules expand, and additional regulators get into the mix, it is hard for one individual to be an expert on all compliance matters. This means that the credit union may not be paying the salary, benefits and other costs for only one employee, but perhaps a group of employees. And that is if knowledgeable individuals are available for hire. If these individuals are not available, the credit union will need to ensure that sufficient training is provided to existing staff regarding the intricacies of rules and regulations. Additionally, those who possess or obtain compliance knowledge are sometimes difficult to retain. Compliance expertise is in high demand these days and those that have it are subject to a never-ending barrage of calls from head-hunters trying to steal them away. If one of these individuals is plucked from the credit union, it is back to square one. continue reading » 13SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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