Companies don’t generally operate in a vacuum. Even small businesses regularly interact with government agencies, laws, policies, and regulations. That’s why business owners should be concerned about their corporate regulatory compliance strategies. First, you should understand what is entailed when putting the right structures in place.
What Is Regulatory Compliance?
A simple definition of ‘regulatory compliance’ could be ‘complying with regulations.’ But it’s really not that simple.
Corporate regulatory compliance means that a business adheres to industry-related state, federal, and international laws and mandates. Laws may relate to a company’s physical structures, corporate activities, information practices, and security.
What Are Some Common Reasons for Corporate Compliance?
Laws are constantly changing, and so your company must stay on top of those changes. You may need to review your corporate regulatory compliance strategies often.
Failing to abide by regulations can be costly. In addition to damaging your company’s reputation, non-compliance can lead to fines and penalties. Also, keep in mind that fines are based on what you did, not the size of your company. Small businesses may get fines in the millions for failing to stay in line.
Finally, and probably most importantly, regulatory compliance protects your clients, your employees, and your company itself.
How Can My Company Make Sure It Stays Compliant?
There are several ways to accomplish this important goal.
- Company Policies. Develop strong policies and procedures related to compliance.
- Employees. Make sure your employees understand the importance of adhering to laws and regulations.
- Compliance Department. Some companies set up entire departments devoted to corporate regulatory compliance.
- Compliance Officers. One or more officers oversee management and staff. In addition to compliance, they may also look for regulatory risks in order to address them before problems arise.
Some companies may use internal controls, as well as software designed to organize and store compliance data.
What Agencies and Laws Are Involved with Corporate Regulatory Compliance?
In some cases, a government agency watches to make sure companies are adhering to laws and regulations. For example, the following list is a short sample of agencies that might oversee your compliance:
- Securities and Exchange Commission (SEC)
- Department of Labor
- Environmental Protection Agency (EPA)
- Equal Employment Opportunity Commission (EEOC)
- Internal Revenue Service (IRS)
- Office of Foreign Assets Control (OFAC)
- Occupational Health and Safety Administration (OSHA)
- International Organization for Standardization
- Florida Division of Corporations
Your company may be required to comply with the following laws on the following shortlist:
- The Dodd-Frank Act
- Sarbanes-Oxley Act
- Sherman Act of 1890
- Securities and Exchange Act of 1934
- Bank Secrecy Act (BSA) related to money laundering
- European General Data Protection Regulation of 2016 (GDPR)
- Health Insurance Portability and Accountability Act (HIPAA)
- Civil Rights Act of 1964
- Americans with Disabilities Act (ADA)
- Fair Labor Standards Act (FLSA)
If this sounds daunting, it can be. Some agencies, like the Small Business Administration (SBA), offer information to make regulatory compliance less difficult.
Your Corporate Counsel Could Help with Corporate Regulatory Compliance
You can get advice on corporate regulatory compliance from your corporate counsel or business attorney.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.