Compliance Management System

A Compliance Management System (or CMS for short) is a best practice program designed to keep you on the right side of Fair Lending regulations.

It’s meant to give you visibility into and control over your organization’s compliance efforts. Without a CMS, you have no easy way to measure or track compliance.

A compliance management system is woven into every functional area in your organization, from sales to advertising to operations and administration.

A compliance management system contains 4 areas of focus:

Board Oversight Topic Center : The board of directors is ultimately responsible for developing and administering a compliance management system that ensures compliance with Federal consumer financial laws and regulations and addresses and prevents associated risks of harm to consumers.

Compliance Program : A compliance program involves the obvious things that come to mind when one hears the word “compliance”: policies, procedures, trainings, guidelines, and so on.

Consumer Complaint Response : An effective complaint management system “should ensure that a supervised entity is responsive and responsible in handling consumer complaints and inquiries.

Audit : Compliance audits are one of a few mechanisms through which government agencies, banking partners, and members of executive leadership can ensure that a business is following fair lending practices.

Compliance Management System