The Federal Reserve’s Federal Consumer Compliance Outlook (Second Issue 2024) stated the purpose of a compliance management program is to identify, measure, monitor and control the inherent compliance risks in a financial institution’s products, services, business lines, and legal entities. While the ways in which this is achieved will vary from institution to institution, maintaining employee awareness through training is key. An effective compliance management program has comprehensive policies, procedures, and training to ensure that all employees…are aware of consumer protection laws and regulations and to deter or prevent compliance violations. Tracking and analyzing consumer complaint data can help a financial institution determine if its controls are effective and may highlight the need to conduct additional employee training.
Jerod explains more in the video.