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Cash, collaboration and Canada — three words to remember this year when thinking about legal technology.

As an industry, legal technology has slowly grown from an obscure niche domain to a full-fledged market segment over the course of the last half decade. Legal professionals (lawyers, academics, non-legal administrators and in-house counsel) are warming (albeit gradually) to the inevitability of technology playing an increasingly prominent role in how legal services are offered and delivered. It also means that investors see a large upside and have begun viewing investments in legal technology as viable options for financial gain.

Cash

By September 2019, investment in legal technology companies had already exceeded $1.2 billion, already above the record-setting $1 billion set in 2018 and a whopping 415 per cent over the $233 million invested in 2017. For legal technology companies, the money is starting to trickle in.

Marked by a record $250 million investment in Clio led by TCV and JMI Equity in early September, and a $200 million investment of Houston-based Onit in January, 2019’s record-breaking year has shown that there is cash available to fuel legal technology companies to the next level. The Clio investment represents the largest venture capital investment of any legal technology company in Canada and surpasses the $50 million received by Kira system in late 2018. Legal technology companies and the “unicorn startup status” (a startup valued at over $1 billion) are no longer mutually exclusive.

The big question, however, is will this trend continue? Will legal technology continue to garner venture capital and private investment in 2020 and beyond? The simple answer is yes, as long as financial markets continue to go up. Investment is forever related to the economy and so any economic slowdown naturally results in an investment chill.

No surprises there. But what’s interesting about the legal sector is the realization by law firms that value-added legal technology is required to protect high levels of profitability and client satisfaction. The pendulum of legal technology development and adoption will never swing backwards. Instead, the question is how quickly it will continue to move forward. Because of this, I predict an upward trend in legal technology investment in the coming years.

Collaboration

Large law firms in particular are realizing the potential value of working with early stage startup companies. There could be any number of reasons, ranging from the inability of existing legal technology solutions to modernize, to trying to find a technology that solves a unique/distinct /niche pain point.

Regardless of the reasoning, law firms all over the world are developing incubators, programs and collaboration projects between themselves and early stage legal technology providers. In the U.K., legal tech incubator program Fuse, out of Allen & Overy and Mishcon de Reya’s MDR LAB, is based in the firm offices giving early stage technology companies the chance to collaborate directly with the law firms and their clients.

For an early stage technology company, the value of working directly with leading law firms grants easier access to the market and ensures your technology is developed with a more focused approach. Frequently iterating your product/service with direct law firm involvement ensures a faster feedback loop and a more focused early-stage product. For law firms, advantages range from having a solution tailored to a firm’s unique needs to the ability to invest as a shareholder of a new solution and purchase the technology at a far reduced price.

Canada

Hockey aside, the world is quickly discovering that Canada punches well above its weight when it comes to producing high quality legal technology companies.

Two companies, Kira Systems and Clio, proudly call Canada home, with ROSS Intelligence recently reopening an office to Toronto. With young companies like MinuteBox and Closing Folders having an increasingly large presence working with law firms outside Canada, as well as leading events like Fireside’s recent Legal Innovation Summit, the world is beginning to take notice.

Most notably, the city of Toronto is now recognized as a global centre for legal technology development. As the financial capital of Canada, with every major Canadian bank and law firm having its head office within a stone’s throw of Bay Street and King Street, combined with great law schools proximate to the University of Waterloo (known for its strong science and engineering departments), you have a perfect recipe for a strong legal innovation culture.

Perhaps there is no better evidence than the existence of the Legal Innovation Zone (LIZ), the world’s first legal technology incubator. Located in the heart of Toronto (only a few minutes walk from every major law firm), the LIZ has incubated well over a dozen companies in the past four years, helping them grow, develop and succeed. Based out of Ryerson University, early-stage companies are given the tools and mentorship they need.

Recognizing the value the LIZ can offer early stage legal technology companies, LIZ has gone global, launching an interactive program for legal technology companies worldwide.

The online interactive tools and virtual programs provide valuable lessons for founders beyond just building a lean canvas model. LIZ director Hersh Perlis proudly noted that the mission statement of the LIZ global program is to “help institute better legal services for all, not just in Canada.”

Legal technology is just beginning to emerge from the shadows and present itself to the world. More importantly, the world is starting to take notice. This is a testament to the lawyers, law firms, entrepreneurs, support staff and clients who all realize there has to be a better way to deliver legal services.

Rest assured that we are well on our way to that inflection point when legal technology really begins to spread its wings and take flight. And when that moment comes, there will be plenty of cash, collaboration and Canada to go around.

Sean Bernstein is a former Bay Street corporate lawyer turned legal technology entrepreneur and co-founder of MinuteBox Inc. He is actively involved in the integration of new technologies within the industry and exploring new processes given the changing legal landscape.

Editor’s note: This article was originally published in The Lawyer’s Daily on January 2, 2020.

The machines will take over. That was one of the most stark warnings from sci-fi thrillers like The Terminator that warned about the potential dangers of artificial intelligence. AI has become ubiquitous across much of society these days, and new developments in technology will give AI an even greater role in the workplace.

Platforms like ChatGPT have taken the world by storm. Global companies quickly adopted the platform as a fast and scalable solution to accelerate repetitive tasks. While many business owners praise the AI solution as a time-saving asset, there are those who fear their jobs are at risk of becoming irrelevant.

Technology doesn’t need to be considered a threat. Instead, it can be a valuable tool to empower law clerks and help legal professionals increase opportunities to boost Legal Recurring Revenue for their respective firms.

ChatGPT is meant to support specialists not replace them

Platforms like ChatGPT are designed to mimic human conversationalists. Since the platform is powered by AI, it’s a constant state of learning and development. Users can ask ChatGPT to recommend suggestions for things like email communications, and the platform automatically generates a message that can be copied into an email distribution channel.

There are limitations with the technology. For one thing, the context is not always clear. Since the platform can’t know all the nuanced pieces of information that are relevant to the intended recipient of those communications, the messaging can be light on subject matter. A human touch is necessary to edit the AI-suggested comms with more depth and insight.

Additionally, while it was designed to mimic human interactions, the suggested copy doesn’t offer the same personalized touch that a human provides. This is especially important to consider in the legal space. Legal services are, in part, about building supportive relationships with clients. Communications notably lacking human empathy risk derailing those relationships.

Law clerks can use AI to become more efficient

Now, we’ve just identified some of the limitations of platforms like ChatGPT. Here’s the other side of that coin: they can also make administrative and clerical work much easier, especially for law clerks in small to mid-sized firms.

As part of a firm’s need to provide transparent client communications, a summary of all meeting minutes will go into a corporate minute book. Law clerks can use the AI capabilities of these solutions to simply draft a message that outlines the summary of those minutes. The clerk can then add in specific points from the meetings to add more context to the message.

Instead of typing out an email summarizing those points, the platform does that work on the clerk’s behalf. This is a great time saving use of technology that streamlines the administrative and clerical work involved with supporting clients.

Law clerks are even more efficient with entity management technology

One of the biggest logistical challenges for law clerks is sorting through binders upon binders of minute book records for a myriad of different clients. Entity management software simplifies this process by eliminating those paper records from the equation. Clerks can scan and upload all minute book records into the platform, which automatically curates documents into standard PDF files that can be sorted, tagged, and organized in a digital archive.

The platform is cloud-based, which makes it easy to access records from any location. Clerks can update records during attorney-client meetings rather than carry physical records back to the firm’s office to complete the amendments. The platform is also highly secure, backed by biometric and hardware key authentications that prohibit anyone without specific permission from accessing the account.

Leverage the right AI solutions to simplify your workflow

Not all legal technologies are powered by AI, and not every legal scenario requires an assist from modern technology. But there are certain occasions when solutions like ChatGPT can make a difference and streamline professionals’ day to day work habits.

For example, an innovative solution known as Second Chair is one of these technological assets. Similar to ChatGPT, Second Chair provides helpful suggestions on how to draft language for certain documents. The distinction is that Second Chair is designed to complement entity management workflows. Its purpose is to provide written suggestions to draft important documents for business entities. Some of the common documents include:

• Articles of Incorporation
• Director residencies
• Shareholder resolutions
• Entity registration documents
• Entity dissolution documents
• Client communications
• Etc.

Time efficiency is a law clerk’s greatest strength

Law firms invest in their clerks’ budding futures by providing these advanced technologies to assist with their day to day duties. Rather than fear these innovative solutions, law clerks should embrace the potential time savings that they can provide.

As firms seek more opportunities to grow Legal Recurring Revenue, clerks should identify ways to support these growth initiatives. By delegating more clerical tasks to technology, clerks can function as the primary representative of the firm when dealing with clients. The practicing attorneys can use their own billable hours for more strategic discussions with clients, while clerks respond to client inquiries about the status of their cases.
Legal technology can modernize law firms and assist law clerks with their own duties and responsibilities. Now is the time to embrace innovation! Learn more about how solutions like entity management technology can transform your legal practice.

Registering or incorporating a business is what makes the entity a legally recognized operation. It’s a process that’s legally mandated for companies that earn a certain amount of revenue in any fiscal year. Additionally, there are many business benefits to registering or incorporating your entity with the appropriate regulators.

As legal or tax professionals, registering one corporate entity is fairly straightforward. What happens if you have to register multiple entities and subsidiaries across various jurisdictions? Your team must compile corporate income records, balance sheets, business expenses, shareholder transactions, and other documentation. All these records must be collected from different entities and subsidiaries under the corporate umbrella, which is a taxing affair in itself.

There are two primary ways that corporate registrations can be filed. The first is in the traditional sense, utilizing paper records and in-person visits to tax registrars to complete the filings. The second is through e-filing. We’re going to focus on the second option in this piece.

Why e-file in the first place?

Unlike the traditional workflow, e-filing eliminates the task of compiling binders of physical records from various entities. You don’t have to go visit a government office to complete your registration. All this work can be done online.

So what are the main benefits of e-filing in the first place? In no prioritized order, here are some of the main advantages of e-filing corporate registrations:

• Save valuable working time
• Eliminate any and all duplicate records
• Reduce the likelihood of clerical errors
• Prompt notifications and updates
• Electronic delivery confirmations
• Confidentiality
• Peace of mind

How do entities e-file their corporate registrations?

Each business entity is entitled to e-file their business registration and digitize minute book records. A business registration is legally mandated wherever an entity registers its corporate headquarters. As a result, the entity must abide by jurisdictional law to remain compliant.

While the process of registering and e-filing with government registries is similar by jurisdiction, there are specific workflows that tax, accounting, or legal professionals must follow. For example, the province of Ontario has created a digitized process for entities to follow when registering within provincial jurisdictions.

The challenge with this approach is that there are a lot of forms and steps included as part of the process. Granted, it is more convenient than compiling records of physical binders and carrying them down to a government registration office. However, it’s still a very outdated digital workflow in the year 2023. E-filing can and should be more simplified.

Use entity management software to streamline e-filing

Here’s where things get a little easier. Instead of registering on government web portals and undergoing multilayered sequences in the filing, you can use entity management software to streamline the entire workflow. Suddenly, the whole process can be completed with a few simple steps, and it can all be finished in a matter of minutes.

When you have an entity management platform, simply log into your account and select the option to file your incorporation with the federal or provincial government. Input the proper credentials and hit submit. The filing is automatically registered with the government, and you can avoid all those unnecessary sequences to complete the registration process.

Not convinced yet? Here are some of the main benefits of e-filing with entity management software and simplifying your workflow:

• Speed and precision → spend less time filing and more time on important business
• Security → the platform is protected by biometric and hardware key authentication
• Digitized archive → all completed records are accessible with the click of a button
• No misplaced records → every document is safely secured within the cloud

Ready to e-file your own corporate records? In need of an entity management platform to simplify the whole process? Join the MinuteBox revolution by contacting our team of professionals and create an account that helps you modernize your corporate registrations backed by advanced cloud-based security parameters.

Every now and again I come across something novel in the legal services industry; something that makes me do a double-take and probe just a little deeper. It happened not too long ago, as I sat at a small table across from a young lawyer at Montreal’s StartupFest in Parc Jean Drapeau in mid July.

Anthony Quevillon is sharp, witty, fluently bilingual and years ahead of his time. He believes that being both a young lawyer and entrepreneur are not mutually exclusive, and has taken it upon himself to provide a completely immersive experience for his clients at his firm Hub6 (www.hub6.com).

Hub6 is a multidisciplinary professional services firm, offering legal, accounting, consulting,HR, and tax solutions, all under one roof. The firm focuses predominantly on Montreal-based young businesses that have a strong proven business model and are ready to scale. The Hub6 team offers a fixed-fee pricing solution and digs deep into the nuances of a company, offering custom tailored solutions by incorporating a multitude of professional services.

Multidisciplinary service firms are characterized as one-stop-shops for client needs. More commonly, accounting and consulting services have joined forces (think any of the big 4 accounting firms). But only recently have legal services been included. While the long-term success of a legal-focused multidisciplinary practice remains to be seen, it is refreshing knowing there are lawyers willing to push the boundaries, all in the name of increasing client value.

Below is a recent interview I had with Anthony:

How long has the firm been around?

Since 2017.

As a legal entrepreneur in Quebec, has the market been receptive or skeptical towards forward thinking law firms and legal services in general?*

We mainly market to the 20 – 40-year-old entrepreneurs, and I feel they are hungry for an innovative model.

What has been the feedback from clients? How many of them use more than one service?

Most of our clients start with legal and accounting services. Even the smallest companies need these services. The entrepreneurs especially appreciate the simplicity of a one stop shop. Once companies scale, most of our mid-sized clients start using our human resources and tax services.

I think one of our strengths is that our services scale with the business. When the entrepreneur begins, he or she can be assisted and guided, helping to minimize service fees at the outset. As the client grows, we can offer more solutions as part of their subscription package. No client should wait until they have 35 employees and a mountain of headaches to begin working on their HR structure.

What led you to develop Hub6? Were there specific moments in your journey where you knew that you had to develop a multidisciplinary service firm?

I used to work at a traditional law firm and had a few “ah ah” moments while experiencing the strengths and drawbacks of the current model. I felt that law firms reacted to the financial and technological changes of the last two decades and ended up in a weird situation that dissatisfies both clients and lawyers alike.

Clients have difficulty assigning value of legal work, in large part because they do not understand what we do as lawyers. Furthermore, most lawyers still follow the billable hour model. Not committing to fees brings uncertainty to clients and adds to the general stress anytime they contact their lawyer. I find that incredibly unfortunate because proactive lawyers can protect their clients from avoidable mishaps, saving their clients time, money and anxiety.

Lawyers aren’t getting a good deal either. The billable hour creates pressure on lawyers to continuously bill. Add to the fact that lawyers are incentivized to work slower and you have the perfect recipe for a lose-lose lawyer-client relationship.

Always being in a reactive state creates a situation where most lawyers service too many clients simultaneously, never having the time to meet with their clients and help them strategize. We end up having a virtual relationship with our clients, which in my mind makes the appeal of legal tech more apt.

As for my place in this mess, I always wanted to do things differently. I used to be a little troublesome in my career, rocking the boat of my employer, trying to create and induce major changes in an existing company. Change is hard, and it’s much harder on bigger structures than smaller ones. I concluded that what we needed to do is start from the ground up. And if we want to build the law firm of the future, then we need to incorporate the relevant service professionals right away so that the synergy within our team is integrated at the outset.

What attracts clients to Hub6? Does one specific service appeal more than others to early stage clients?

While all our services are crucial to a business, accounting and tax services have always had greater appeal to companies than legal or human resources services.

Hub6 is not a service “per say”, but an amalgamation of our unique features. For example, a fixed monthly subscription-based model for accounting and legal services is, to my knowledge, a rare offering. We also have a talented and experienced set of professionals who specialize in different service areas.

We put a lot of emphasis on proximity and taking the time to know our clients. It is not uncommon for us to refer clients between one another or to be called for a referral about anything a business may need. While clients come for the simplicity and innovation of our firm, they stay because they find a team on which they can count.

How did you develop your team of service providers and professionals?

We began as a two-man team, myself and my partner: one accountant and one lawyer. In our first year of operation, we had several freelancers and partnerships to cover the other services, one of which was with a bigger multidisciplinary firm that supported us with a great variety of staff. Once we developed a strong core of clients, we hired our own team.

Growth is happening fast, and we are always looking for top talent. Believe it or not, talented and innovative employees that seek to work differently are hard to find, especially in a traditional profession like ours.

How does technology factor into your service? Are there technologies you are looking to adopt but haven’t yet? Are you satisfied with the current technologies on the market?

Legal technologies are generally underwhelming. I mentioned before that the general public neither understands nor values legal work, and I think that shows in the legal tech sector. There are so many templates and contract generators out there, yet none of them make sense. A novice without legal experience or knowledge should not write their own contracts. Even lawyers can make crucial mistakes in contract drafting. Imagine what a random entrepreneur can do without understanding the risks and consequences of the language they use! The truth is, most people, including legal tech companies, sometimes seem to think that drafting a contract is about putting a name and address in a blank template.

Technology wise, we use a bunch of tools, including in the management of our firm. For our accounting services, we specialize in cloud accounting, which is a much more mature market than legal technology. We also have a web-based client portal that connects our clients to a live detail of our work and their subscription. This portal is in continuous development and we hope to make it a core feature of our business and services.

In the legal world, we have begun using MinuteBox for the storage and management of our corporate minute books. We’re also working on a contract drafting software since I do believe there is a way to have a powerful software for both lawyers and the general entrepreneur that automates the redundant work of contract drafting. However, it demands more than a few integrations, so there is still a long road ahead.

You can expect something solid coming out in early to mid 2020.

What is the purpose of compliance policies and procedures? In the grandest and simplest sense, it’s to protect the business. Compliance programs are designed to help your business, as a legal entity, remain in compliance with jurisdictional laws and regulations.

It’s never been more important for legal entities to review their compliance programs. Canadian regulators are emboldening RCMP agents to crack down on white collar crime and reduce the impact of fraud or financial malfeasance on Canadian society. Failure to maintain compliance can result in substantial fines, criminal or civil charges, and, in some cases, imprisonment for business leaders and shareholders.

The purpose of compliance policies and procedures is to minimize the risk that these worst-case scenarios may occur. Compliance programs align all key stakeholders on the fundamental principles of the law, enabling all stakeholders of a legal entity to enforce the program and protect the interests of the business.

7 elements of an effective compliance program

What does a compliance program look like? What are the elements of an effective compliance program that should be documented?

Fundamentally, there are 7 core elements that make up a compliance program. These elements are broken down as follows:

• Documented policies and procedures
• Designated compliance officers
• Effective training procedures
• Proper reporting programs
• Monitoring and auditing systems
• Enforcement of compliance policies and procedures
• Proper investigations into non-compliance incidents

What is the value of compliance in business?

The value of compliance policies and procedures lies in the program’s function as a predetermined roadmap for the business. Company values and behaviours are framed in operational contexts that outline how the business operates day to day. At its core, compliance helps a business standardize operations and conduct itself responsibly.

Additionally, compliance offers reassurance to your customers that your business abides by certain ethical and legal standards. Customers can rest assured that your entity’s core values are secure and practiced in every way that you conduct your business. Compliance may even give you a competitive advantage in your industry by creating workplaces that inspire customer loyalty and enable long-term growth for your business.

Why are compliance policies and procedures important?

In addition to abiding by the laws of the land and promoting good organizational governance, compliance policies and procedures streamline internal workflows. A well-informed compliance program can help create new efficiencies throughout your business, improving operations in the pursuit of higher growth.

Compliance policies and procedures are the roadmap, and they articulate core values that inform decision-making throughout the organization. Decisions that adhere to strict guidelines, policies, and procedures ensure resources are managed in the most efficient and practical ways possible. Along with minimizing risk and protecting corporate interests, compliance policies and procedures can help improve how your organization functions from day to day.

Use entity management systems to maintain compliance

So, what is the best way to maintain compliance policies and procedures? Since compliance is typically managed by Chief Compliance or Legal Officers, a platform designed to support legal entity management and corporate compliance is the best resource to maintain those compliance policies and procedures.

Cloud-based entity management solutions like MinuteBox have built-in compliance modules that intuitively help your compliance team structure policies and procedures. The compliance framework monitors organizational charts, calendars, workflows, and other templates for any errors, statutory non-compliance, and date-based compliance tasks that may be lacking.

By uploading all compliance data into the platform, your team creates a centralized repository for all organizational data that affects the compliance program. The platform’s intuitiveness automates the workflow and effectively helps your organization follow the jurisdictional letter of the law. You can fulfill the purpose of compliance policies and procedures using entity management software, successfully maintaining compliance as efficiently as possible.

Corporate compliance refers to internal policies and procedures enacted by a legal entity in response to federal or provincial laws and regulations. An enforced compliance program detects and prevents any violations of those regulations, protecting the corporation from any fines or criminal indictments that may occur as a result of those violations.

So, how does a legal entity enact an effective corporate compliance program? We’ve done the research, and we’ve identified seven elements of an effective compliance program that all legal entities should administer in their own corporate structures. Let’s break down those seven steps.

Why is corporate compliance important?

Before diving into the specific sequences of a compliance program, let’s begin by answering a very fundamental question. Why is corporate compliance so important in the first place?

A corporate compliance program helps organizations prevent any discrepancies that could result in non-compliance penalties for the business. Canadian regulators are cracking down on white collar crimes, targeting organizations that violate compliance policies.

Crackdowns are being implemented in response to the Cullen Commission. The commission’s report was the culmination of years-long money laundering inquiries in British Columbia. The report’s recommendations were submitted to the federal government in Ottawa.

Following the submission, the RCMP was tasked with enforcing new regulations against complex financial crimes. This resulted in the creation of the Integrated Market Enforcement Team’s Special Advisory Group and the Canadian Financial Crime Agency. The purpose of these institutions is to hold accountable any individuals or legal entities that commit fraud, money-laundering, insider trading, organized crime, and other financial crimes that put Canadians at risk.

What is the purpose of a corporate compliance program?

The federal government and the national police force are enforcing compliance laws to reduce the amount of white collar crime across Canada. Organizations that lack effective compliance policies are at risk of being swept up in these investigations. If there is evidence of deliberate malfeasance, businesses can be subject to steep financial penalties for non-compliance.

Therefore, the purpose of a corporate compliance program is to mitigate risk and protect organizations from severe, long-term financial losses. An effective corporate compliance program sets boundaries to enforce permissible conduct and good governance.

7 elements of an effective compliance program

So, what are the 7 elements of an effective compliance program? Here’s what you need to know to create a corporate compliance program that will protect your organization from unwanted regulatory investigations, penalties, and other long-term consequences.

1. Documented policies and procedures

Documentation of policies, procedures, rules, and controls demonstrates your company’s determination to abide by compliance laws. Written documentation enables compliance officers to enforce the mandate and ensure the organization “practices what it preaches.”

You can simplify the documentation process by using entity management systems with built-in compliance modules. A built-in compliance framework monitors your organizational charts, calendars, workflows, and other templates for any errors, statutory non-compliance, and date-based compliance tasks that may be lacking. These automated workflows help your organization follow the jurisdictional letter of the law so that you always remain in compliance.

1. Designated compliance officers

Org. charts provide oversight into the various executives and directors responsible for managing the legal entity. Among the featured positions on your organizational charts should be a Chief Compliance Officer, whose purpose is to enforce the documented compliance policies and procedures.

A Chief Compliance Officer must have the authority to maintain direct communication with all executive officers and members of the Board of Directors. While it’s not mandated, the person selected for this position should have previous legal experience. This will help the officer enforce the protocols and protect the organization from inadvertent non-compliance.

1. Effective training procedures

Training is absolutely essential to an effective compliance program. Once the policies have been created, the Chief Compliance Officer and his/her team must enact training protocols to properly educate employees, business partners, executives, directors, and shareholders on the fundamentals of the corporate compliance program.

The purpose of compliance training is to ensure everyone associated with the entity fully understands the rules of corporate compliance. Once the training is complete, updates should be made to minute book records notarizing the completion of the training programs. If outside regulators ever investigate the company, these records will show that the entity has crafted effective corporate compliance programs.

1. Whistleblower reporting programs

If there are incidents of behaviour that are not in compliance with corporate policies, there needs to be a reporting mechanism in place. Sometimes, individuals who witness those examples of non-compliance actions fear the ramifications of speaking up.

Part of an effective compliance program is giving those witnesses the option of anonymously reporting the facts. This will help increase accountability and allow organizations to catch non-compliance behaviours before they cost the company significant penalties. People will feel more comfortable reporting the truth to compliance officers, allowing those officers to nip the problems in the bud before they spiral out of control.

1. Monitoring and auditing

The Chief Compliance Officer’s roles and responsibilities include monitoring and auditing the corporate compliance program. These reviews of the program should be done periodically, and if any issues are identified, those problems should be immediately addressed and fixed.

An entity management platform with a built-in compliance module can assist with the monitoring and auditing process of your compliance program. Use the compliance module to review the documented policies and ensure no errors or statutory non-compliance tasks are missing from the corporate program.

1.  Enforcement of compliance policies

The Chief Compliance Officer is also responsible for enforcing the compliance program. This means subjecting every member of the organization, including the CEO and the Board of Directors, to the same standards and requirements as interns or contract workers.

Compliance is a ubiquitous requirement that all levels of the organization must abide by to remain compliant with the laws of the land. Enforcement of the compliance program ensures that no special treatment is awarded and no bending of the rules is prohibited.

1. Investigating and responding to non-compliance

Finally, investigations and responses to non-compliance behaviours are the only way to ensure the program is enforced across the organization. Compliance officers must step in and lead the investigations when the organization is at risk of non-compliance.

A compliance program that has no teeth is an ineffective set of guidelines. Properly responding to and investigating incidents of non-compliance may result in short-term pain, but it will effectively prevent the organization from becoming subjugated to stiff penalties from the law.