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Regulation and Compliance Summary

“Making Great Ideas Become Reality”

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Why do we need Regulations & Compliance?

Regulation - Objectives Compliance Objectives

Protecting public interests Facilitating creation of the transparent and efficient system Limiting systemic risks Setting guidelines and benchmarks Effective monitoring Achieving consistency Building confidence and stability in the system Managing expectations

Avoid fines and penalties Build and maintain confidence in the system Protect reputation Increase business opportunities Fulfill corporate responsibility Achieving consistency Risk identification and management

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Issues Heard from Clients:

A more integrated approach to managing governance, risk and compliance Issues is needed because of…

Speed at which new regulatory requirements are being enacted.

Expansion internationally and need to customize codes of conduct and performance expectations.

Complex operations using different administrative system limits dramatically manages the challenges for achieving consolidated reporting.

Manual processes that increase the risk of non-compliance.

Knowledge gaps in people responsible for reporting on risk and compliance issues.

Board-level reporting must be relevant, informative and at an appropriate level of detail.

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CMA Client Services

In order to remain competitive in today’s global marketplace, financial institutions have greatly expanded the scope and complexity of their services and activities resulting in an ever changing and increasingly complex regulatory environment. Furthermore, due to the 2008 financial crisis, consumer credit crisis, several high profile compliance breakdowns and increased emphasis on consumer protection, the federal and state regulatory agencies, investors, legislators and the general public are today more focused on financial institutions’ customer practices and regulatory compliance performance like never before. Moreover, a compliance failure can result in litigations, financial penalties, regulatory constraints and reputation damage that can strategically affect an entire organization.

CMA’s financial regulatory / compliance team is well qualified to assist financial institutions in addressing these complex challenges and staying abreast of changing regulatory requirements and expectations and industry practices. Our highly qualified and experienced professional provide a full range of regulatory compliance risk management services. We do not advocate a “one-size fits all” solution; instead we offer regulatory compliance advice and solutions that are tailored to each client’s individual business needs. We provide a proven approach with the emphasis on developing innovative, low-cost approaches to managing and overseeing compliance risk. We work closely with our global network to provide regulatory advisory services across all geographic locations.

Our commitment to client service means that CMA brings the right skills and resources to meet your specific needs. Whether your needs relate generally to consumer compliance or are more specific to certain compliance areas – such as CRA, AML, fair lending etc, we bring you the right people with the right experience

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How CMA can Help

Our SMEs’ have diverse regulatory knowledge that covers the range of complex regulatory challenges facing most financial service firms. We have first-hand compliance and regulatory knowledge and experience – most members of our regulatory/compliance team have either previously worked for a financial services or worked for a financial services regulatory agency. We can draw on our vast network of regulatory knowledge and practitioners to address regulatory requirements in major and regional financial centers. We are leaders in leveraging technology to lower the cost, and improve the quality, of large-scale transaction and customer-level compliance testing. Develop technology strategies, architectures and roadmaps to support new operating models for regulatory and compliance. Implement systems and procedures to increase operational efficiency and reduce costs. Develop a best practice approach to ensure cost-effective regulatory compliance. Automation of the production and flow of legal documents to give ready access to those that need it, when they need it. Design, build and implementation of a solution to manage data and document flow for OTC contracts. Conduct a check on individual or multiple entities to ensure legal and regulatory compliance. Deliver solutions that increase business agility and ensure a best practice approach throughout the financial institution. Improve the data flows from contracts (ISDA CSAs) to downstream users in Collateral Management, Risk and Finance.

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Services CMA can Provide

Improve the Effectiveness and Reduce the Cost of Compliance Programs Compare corporate and other compliance programs and processes to regulatory requirements and

expectations and industry practices and offer recommendations for improvement. Develop written compliance programs/policy documents with management objectives and regulatory requirements. Develop compliance risk management processes using a proven, integrated approach to regulatory compliance program management with a focus on creating effective, low-cost and sustainable compliance programs and processes. Rationalize existing compliance activities across multiple entities and businesses to create sustainable and low-cost programs.

Design and Implementation of Compliance Process Advise on the design and implementation of compliance program elements / processes. Leverage technology solutions to enhance the integration and effectiveness, and reduce the costs, of compliance program processes. Operational compliance through integration into core business processes.

Regulatory Readiness Reviews Conduct regulatory readiness compliance reviews to assist financial institutions in their preparation for regulatory examinations/inspections by identifying potential regulatory gaps and providing specific actionable recommendations to address these gaps.

Risk and Control Assessment Evaluate design and operating effectiveness of compliance risk and control processes including those relating to Privacy, AML, Fair Lending, CRA, Affiliate Transactions, Regulation 0, Y and K, Consumer Credit and Deposit requirements and other applicable compliance requirements.

Compliance Transaction Testing Perform transaction testing to determine a financial institution’s adherence with applicable safety and soundness and consumer protection laws, regulations.