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Theta Lake Introduces SEC Regulation Best Interest Monitoring to Deliver Refined Compliance Coverage

By March 9, 2020No Comments
finra 2019 supervision communicaitons min

Santa Barbara, CA— March 9, 2020— Theta Lake, Inc., the RegTech company that helps compliance teams scale their compliance risk detection in modern collaboration platforms across video, voice, chat and more, today announced new innovations that add Regulation Best Interest (Reg BI) detection to its compliance monitoring platform.

With the Securities and Exchange Commission tasking financial institutions (FIs) to prepare for Reg BI enforcement by midyear, compliance officers are actively pursuing business strategies that accelerate coverage for communicating the right disclosures and documentation, including Form CRS, for all business-related communications.

“The SEC’s Reg BI requires FIs to conduct a significant review of business practices and, in effect, increase their communication monitoring to ensure proper disclaimer usage, discussion of Form CRS, and that the sharing of Form CRS occurs. In turn, FI compliance teams are trying to implement Reg BI readiness and monitoring with minimal disruption to operations in a time where collaboration and video communication tool usage is skyrocketing, which requires supporting technologies to act as natural extensions of the firm’s communication practices,” said Devin Redmond, CEO of Theta Lake. “Theta Lake’s ComplianceMDTM makes Reg BI readiness simple for FIs by providing refined coverage for monitoring, supervising, and reporting on business communications to address the new Reg BI requirements across the sharing, showing, and discussion of disclaimers, disclosures, and Form CRS.” 

FIs uniquely face the challenge of adopting rapidly evolving communication methods to engage with clients in their preferred method, such as chat messaging and video conferencing, while also providing effective supervision over financial communications and archiving as required by regulations. With FINRA putting collaboration platform supervision and archiving on its 2020 exam priorities, firms are increasingly finding it difficult to meet these requirements using solely human supervision and text-based searching.

In the new release, Theta Lake’s multi patent pending ComplianceMD enhances compliance detections to find conversations relevant to Reg BI, the presence or absence of appropriate disclaimers across disclaimer and disclosure types as well as support for exact detection of custom firm disclaimers or disclosures, and the presence or discussion of a Form CRS—all fully supported over the firm’s range of digital communication mediums, including voice, video, chat, and text. This includes full reporting functions and views to support internal and external audit requirements.

Reg BI disclaimer detections


Theta Lake’s ComplianceMD expansion to include support for Reg BI adds to the solution’s comprehensive communication monitoring library of 50+ regulatory detections, such as the highly-related requirements for the FCA PRIIPs with Key Information Document (KID) sharing in the UK, FINRA promissory statements, insurance suitability, Dodd-Frank derivatives conversations, and many more.

Theta Lake ComplianceMD enables compliance teams to proactively review large volumes of communications at scale using their existing finite compliance personnel. This allows compliance teams to correct employee behavior to effectively diminish risk by automatically identifying key and relevant risks in a sea of changing regulations across an ever-growing mix of communications without dramatic staffing cost increases.

ComplianceMD technology uses machine learning (ML) and natural language processing (NLP) to analyze audio-, video-, and text-based communications to find regulatory risks and items of interest in what was spoken, shown, or written in collaboration or other video, audio, or text content. These detections are then used to power an AI-assisted review workflow for compliance staff.


Theta Lake Compliance Suite now with ComplianceMD Reg BI coverage is currently available.

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For more information, visit: https://thetalake.com.


About Theta Lake

Theta Lake, Inc., a two-time RegTech 100 company and Gartner 2019 Cool Vendor, was founded in 2017 by proven entrepreneurs and enterprise technology builders with decades of leadership recognition from Global 100 customers and top industry analysts. Theta Lake’s multi-patent pending AI helps compliance teams more effectively and quickly scale their compliance risk detection and the workflows for communication supervision of modern video, voice, and unified collaboration systems. The Theta Lake Compliance Suite is SOC2 Type 2 compliant. Visit us at Thetalake.com; LinkedIn; Twitter.