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.
