In The Room Where It Happened…
Industry Leaders Exchange Insights About the Future of Compliance
There are moments when you find yourself listening in on a conversation so full of insight, you wish your colleagues were there to hear it too. That was the feeling during a fireside chat between Steve Brown of StarCompliance (Star) and Troy A. Paredes, former Commissioner of the U.S. Securities and Exchange Commission (SEC) at Star’s Shaping the Future of Employee Compliance event on June 12. Their discussion ranged from the current state of the U.S. capital markets to the SEC’s evolving stance on crypto, the growing role of AI, and how firms should approach compliance as a strategic imperative in an uncertain environment.
For those who could not attend, here’s a look at the topics, key takeaways, and resources from Star’s library:
Capital Markets, Debt, and Data
The conversation kicked off with a look at the broader capital markets landscape, where economic pressures and data growth are reshaping how firms approach compliance. While debt levels continue to rise, the long-term market response remains uncertain. At the same time, data volume is rapidly expanding. To meet this challenge, technology is advancing, creating opportunities for compliance teams to use data more effectively to manage risk. Regulators increasingly expect firms to take a more proactive, data-informed approach to oversight and reporting.
Key takeaway: Rising debt, expanding data, and advancing technology are converging to reshape how firms manage risk and meet growing regulatory expectations.
Resource: Harnessing the Power of ‘Big Data’ in Compliance shares practical tips for accessing your firm’s information and leveraging regulatory data more effectively.
Harnessing the Power of Big Data
Private Credit Growth and MNPI Considerations
The discussion then turned to the evolving credit landscape, where regulatory shifts have driven growth in private markets and introduced new compliance challenges. In the post-Dodd-Frank environment, increased restrictions on traditional lending have contributed to the rise of private credit markets. Firms face increasing pressure to strengthen control over material, nonpublic information (MNPI) abuse, as they navigate the complexities of expanding private credit markets and evolving business structures.
Key Takeaway: As private credit markets grow, firms must enhance oversight of MNPI to keep compliance aligned with shifting business models.
Resource: Mitigating Risk: Enterprise Conflicts at Banks, Investment Banks, and Broker Dealers shares best practices for managing conflicts of interest across financial institutions.
Enterprise Conflicts Handbook
Regulatory Shifts at the SEC
As the SEC undergoes leadership changes, so does its regulatory focus, often shifting with each new administration. Chairman Paul Atkins’ comment that “It’s a new day at the SEC” reflects a broader effort to be more receptive to market input, particularly in areas like crypto, public company reporting, and expanding access to private investments. However, this openness does not imply reduced oversight. Regulators continue to expect firms to maintain strong compliance standards.
Key Takeaway: Firms must maintain strong compliance standards through regulatory shifts, since rebuilding a framework once it’s been scaled back can be complex, time-consuming, and difficult to restore effectively.
Resource: Riding the Regulatory Wave – A Guide to Navigating the Shifting Tides of Employee Regulatory Compliance is designed to help organizations track major regulatory trends, identify risks, and implement best practices.
Riding the Regulatory Wave
Geopolitical Risk and Cross-Functional Communication
Geopolitical forces remain a significant source of uncertainty for firms, with trade policies and regulatory developments often shifting without warning. Tariffs and global policy changes continue to introduce risk, making cross-functional collaboration essential. Engaging compliance, legal, corporate strategy, and government affairs teams ensures a more informed, agile response to emerging challenges.
Key Takeaway: Firms that foster collaboration and communication across departments are better positioned to anticipate, interpret, and respond to policy-driven risks in real time.
The Role of AI and Human Judgment
The conversation turned to the growing role of Artificial Intelligence (AI) in compliance and the broader implications for both firms and regulators. AI is becoming more integrated into compliance functions, offering speed and efficiency, but it must be balanced with human judgment to ensure fairness and ethical oversight. Firms should regularly evaluate how AI is applied within their programs and establish clear escalation processes. As regulators begin to explore their own use of AI, this shift could significantly reshape the compliance landscape.
Key Takeaway: The adoption of advanced technologies to manage risk and ensure accountability should be grounded in a thoughtful blend of AI and human oversight.
Resource: The Intelligence Era: Moving Beyond Automation explores how AI is being applied today and what it means for the future of risk management.
The Intelligence Era: Moving Beyond Automation
Crypto, DeFi, and the Regulatory Framework
Cryptocurrency and decentralized finance continue to challenge traditional regulatory frameworks, prompting ongoing discussions about how oversight should evolve. The SEC is actively working to clarify its role in crypto regulation, particularly in the context of decentralized finance (DeFi), where conventional intermediaries are often absent. As a result, there is a growing focus on regulating the transaction itself rather than the intermediary. Innovative approaches may be required to balance the need for innovation with the responsibility of ensuring regulatory accountability.
Key Takeaway: As crypto markets mature, both regulators and firms must rethink traditional models of oversight to effectively govern emerging technologies without stalling innovation.
Resource: Crypto Regulations Decoded: Navigating Digital Asset Compliance — your essential guide to emerging global crypto regulations and practical steps to manage compliance risks.
Crypto Regulations Decoded
Compliance as a Strategic Function
The discussion closed with a look ahead, focusing on how firms can position compliance as a driver of long-term value for an organization. Compliance should be viewed as a strategic imperative, not just a requirement. Programs maintained and aligned with business goals are more likely to support resilience and adaptability, especially during periods of regulatory uncertainty or change.
Key Takeaway: Treating compliance as a strategic function, not just a checkbox, helps firms build stronger foundations that can withstand evolving regulatory pressures.
Resource: The Compliance Officer’s Ultimate Guide to Employee Compliance shares real-world insights from compliance leaders to help you enable responsible growth and foster a culture of integrity.
The Compliance Officer’s Guide To Employee Compliance
Looking Ahead
We’re especially grateful to Troy for his time and generosity in sharing his insights and knowledge with the compliance community. Conversations like this one offer a valuable window into the complex, fast-moving world of compliance and underscore the importance of staying informed, connected, and forward-thinking.
That’s why Star is committed to continuing the conversations that matter while bringing together voices from across the industry to inform, challenge, and advance the future of compliance. As the regulatory landscape evolves, we’ll keep creating opportunities to share insights and foster dialogue that helps firms stay ahead.
To learn more about Star’s products and services and how we support firms in building stronger, smarter compliance programs, schedule a personalized demo here.
