Compliance Rating System Updates

The Regulatory Agencies have announced an update to their compliance rating system. It is to be used beginning on or after March 31, 2017.

The 1-5 system considers factors in three main categories: Board and Management Oversight; Compliance Program; and Violations of Law and Consumer Harm. The relevance of each factor will vary based on the size, complexity and overall risk profile of the institution. The lower the rating, the lower the degree of supervisory concern. In other words, the lower, the better:

1 = Strong
2 = Satisfactory
3 = Deficient
4 = Seriously deficient
5 = Critically deficient

These changes are partly due to the Agencies’ transition from a transaction testing focus to a risk-based focus of your overall Compliance Management System (CMS).

Published
2016/11/16
Diane Dean
Diane Dean

Diane Dean

Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients. Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!

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