James S. Ganther, Esq. President Mosaic Compliance Services.

James S. Ganther, Esq.James S. Ganther, Esq.

President

Mosaic Compliance Services

Mosaic Compliance Services

Digital ComplianceDigital Compliance

What is it?

Any compliance solution or tool that is:

•Web-based; or

•Computer-based; and

•Automated

•Efficient

•Effective


Why do you care?

Research shows that:

1.Dealers are cheap.

2.Dealers expect compliance solutions from their vendors.


Digital Compliance Topics:

•Environmental, Heath & Safety

•Human Resources

•OFAC

•Safeguards Rule

•Red Flags Rule


But wait, there’s more:

•F&I Menu

•Dodd-Frank/Adverse Action Notices

•Compliance Training

•Product Training

•Audit and Review


A few thoughts:

•If you don’t document it, it didn’t happen.

•Learning Management System (“LMS”)– Tracks usage

– Generates reports

– Archives results

Familiar Compliance Hot SpotsFamiliar Compliance Hot Spots

Environmental, Health & SafetyEnvironmental, Health & Safety

In a nutshell, Dealers need to obey:

•OSHA

•DOT

•EPA

•State agencies

•The local press corps

Environmental, Health & SafetyEnvironmental, Health & Safety

Human ResourcesHuman Resources

In a nutshell, Dealers need to:

•Hire employees

•Discipline employees

•Fire employees

•Not get sued

Human ResourcesHuman Resources

OFACOFAC

In a nutshell, Dealers must:

•Confirm that their customers are not on the list of Specially Designated Nationals (the “Bad Guys List”)

•Don’t close Gaddafi!

OFACOFAC

Safeguards RuleSafeguards Rule

In a nutshell, Dealers must have:

•A Compliance Officer

•Information Security Policy

•Physical, Electronic, and Procedural Safeguards to protect consumers’ Nonpublic Personal Information (NPI)

Safeguards RuleSafeguards Rule

Electronic Document Management

• Incorporate all your deal documents into our online compliance solution

• Quickly and easily retrieve documents at the touch of a button

• No more misfiled deal jackets or lost documents

• Stay compliant with the Safeguards Rule

Keep your customers’ personal information secure.

© DealerTrack, Inc. All Rights Reserved

Red Flags RuleRed Flags Rule

In a nutshell, Dealers need:

1.Policy

2.Training

3.Detect

4.Prevent

5.Mitigate

6.Oversee

7.Ensure

Red Flags RuleRed Flags Rule

Risk Level & Status SegmentRisk Level & Status Segment

OFAC, ID Match & Red Flag AlertsOFAC, ID Match & Red Flag Alerts

ID Match Application vs. Credit Bureau

ID Match Application vs. Credit Bureau

Manual Review Process:Manual Review Process:

“Out of wallet” Authentication:“Out of wallet” Authentication:

In a nutshell, Dealers must present products:

•Consistently

•Accurately

•Uniformly

•Legally

•Effectively

F&I Menu

F&I Menu

Dodd-FrankDodd-Frank


•Provide adverse action notices that– Disclose numeric score

– Give range of scores

– Decision factors

– Date of score

– Entity that created the score

– Person at the dealership to blame

Customer ABC123 America StreetAnytown, USA

Customer ABC

Dodd-Frank

Compliance TrainingCompliance Training


•Expect their non-lawyer employees to consistently obey laws they do not know exist.

•Yeah, good luck with that.

Compliance TrainingCompliance Training

Product TrainingProduct Training


•Expect their employees to always tell the truth.

•Expect their employees to consistently describe the features, benefits, limitations and exclusions of every product they sell.

Product TrainingProduct Training

Audit & ReviewAudit & Review

If Dealers Don’t ComplyIf Dealers Don’t Comply

ConclusionConclusion

1. Simple, Effective, Affordable digital compliance tools are available.

2. Dealers expect vendors to cover their subject.

3. No one vendor covers everything.

4. Dealers need a checklist to make sure all the bases are covered.

ConclusionConclusion

For a copy of a Compliance Checklist:

[email protected]

mailto:[email protected]

James S. Ganther, Esq. President Mosaic Compliance Services.

Documents

Transcript of James S. Ganther, Esq. President Mosaic Compliance Services.