Vendor/FCPA Screening
In today’s business climate, “Know Your Vendor” is just as important as “Know Your Customer.” With regulators actively reviewing all aspects of your financial firm’s business, demonstrating due diligence and care when it comes to screening outside vendors is critical. “Know Your Vendor” programs conducted in a consistent, repeatable manner, using the vast array of public and open source records available today will reduce financial and reputational risks for any investment related firm. Before allowing outside vendors near any aspect of your business, they should be independently researched. In the last decade of servicing our investment industry clients, HedgeCheck™ has developed a concise vendor report with detailed research covering dozens of databases and public records repositories. By taking a consistent, thorough and repeatable “Best Practices” approach, HedgeCheck™ researches potential vendors looking for evidence of dishonesty, inconsistency, questionable financial health, poor past performance, litigation, debt and tax issues as well as media and social media postings that could indicate risks for your firm.
In today’s business climate, “Know Your Vendor” is just as important as “Know Your Customer.” With regulators actively reviewing all aspects of your financial firm’s business, demonstrating due diligence and care when it comes to screening outside vendors is critical. “Know Your Vendor” programs conducted in a consistent, repeatable manner, using the vast array of public and open source records available today will reduce financial and reputational risks for any investment related firm. Before allowing outside vendors near any aspect of your business, they should be independently researched. In the last decade of servicing our investment industry clients, HedgeCheck™ has developed a concise vendor report with detailed research covering dozens of databases and public records repositories. By taking a consistent, thorough and repeatable “Best Practices” approach, HedgeCheck™ researches potential vendors looking for evidence of dishonesty, inconsistency, questionable financial health, poor past performance, litigation, debt and tax issues as well as media and social media postings that could indicate risks for your firm.
Case Study:
HedgeCheck™ was tasked with screening a new provider of insurance products for a client. Research revealed that the sales manager for the new insurance vendor had been publicly linked to a series of questionable expense account transactions. He was apparently spending tens of thousands of dollars entertaining and rewarding his agents. State insurance regulators had questioned the propriety of them inducements prompting action by the firms board of directors. Our client was then able to purposely restrict this individual from having any involvement in their dealings with the insurance provider. This restriction allowed the otherwise favorable deal to be completed.
