10.01.25

Why Compliance Needs a Broader Frame: Introducing the Risk, Operations, Compliance and Supervision (ROCS) Education Committee

by: BISA Staff

Recently, the BISA Regulatory & Compliance Committee updated their name to the Risk, Operations Compliance and Supervision (ROCS) Education Committee. To understand the considerations behind this change, BISA staff spoke with ROCS Committee members about the update, future goals and how they are aligning with the evolving financial services landscape.

Why did the committee decide to update its name to the Risk, Operations, Compliance and Supervision (ROCS) Committee?

Charles “Cory” F. McCallum III, CFP® (CM), First Citizens Bank: To meet the current environment within the bank and credit union space. As our industry consolidates and more firms leverage third-party risk management (TPRM) to support their business, we are a smaller group. We wanted to expand our reach and be more supportive of the non-sales areas.

Rob Blenis (RB), Raymond James: The reason for the update became apparent as the members involved in the group had transitioned from a traditional compliance role in most cases to individuals who are covering roles in these other important and related areas. When the original committee was organized, there likely was little in the way of supervision roles as they are understood and exist today.

Jeffrey Boardman (JB), Huntington Financial Advisors: We made this change to recognize the roles that professionals from each functional area have in managing risk. At most firms, risk, operations, compliance and supervision professionals collaborate regularly by integrating their expertise to identify, assess, monitor and mitigate risks faced by broker-dealers and investment advisers. 

What does risk, operations, compliance and supervision entail?

CM: We are the behind-the-scenes ROCS teams who help ensure clients receive solutions that meet their risk tolerance and investment objective on a consistent basis. Our compliance partners know the laws and regulations in partnership with our legal teams. The risk teams help to advise on how solutions meet the needs of our clients in an appropriate manner. The operations team helps with fulfilment in partnership with carriers and back office support providers. The supervision teams are an oversight function that partners with field principal managers to review transactions and ensure the transactions was appropriate for the client.

RB: This org structure will bring together individuals from various banks and other broker dealers who work in risk roles like internal audit or AML/BSA — often referred to as third line of defense roles. Traditional compliance officers are responsible for policies, testing and examinations, which are considered second line of defense. Supervision personnel, along with financial advisors, are on the first line of defense. These staff are doing the day to day review and approvals and are responsible for discipline and heightened supervision, as well as reviewing and making exceptions.

Has the committee’s mission changed in alignment with the new name? If so, how will your work evolve?

CM: Our mission remains the same — to support our industry and each other.  ROCS is expanding our support to reach other non-sales areas. We remain an educational and knowledgeable group that will help you find a solution that matches your organization’s risk tolerance and needs. We help each other to see around the corner and understand through our discussions what is happening in our industry. 

Brian McBride (BM), Huntington National Bank: No, the mission has not changed. What is a little different is how we are viewing supporting the financial services industry and BISA member firms. A focus on the regulatory environment and compliance requirements remains part of the everyday work of risk, operations and supervision colleagues. Advisors, portfolio managers, middle management, executives, risk partners, support staff, customer service, etc. are all impacted by regulations and compliance. So, our work is focused on the interconnectivity of ROCS and all the various roles that drive a financial institution to best assist its clients and their goals.

What trends or emerging issues are ROCS watching closely? Has consolidation in the industry impacted your work and focus?

CM: We continue to monitor the changing political administration’s impact on each of our clients, firms and advisors. As an industry, we are here to support our clients’ financial well-being. The requirements from the Department of Labor (DOL) rule in PTE 2020-02 and the court cases that have followed have a negative impact on our firm’s ability to strategically plan and train our advisors. Our industry is in a consolidation phase and demographically fewer advisors which has reduced the needed number of roles available for ROCS professionals in B/D, RIA and insurance agencies. These consolidations have raised the importance of industry associations such as BISA. The BISA ROCS monthly topics help us remain educated on current events in our industry.

JB: Several emerging trends are reshaping our industry. Notably, consolidation and the growing shift toward third-party managed and outsourced broker-dealer models have reduced the number of available professional roles. At the same time, an increasingly uncertain regulatory environment is complicating strategic planning and advisor training. ROCS offers a collaborative forum where members can engage with peers to better understand these challenges and prepare for what lies ahead.

How can ROCS support members as they navigate this evolving landscape, and what value do they gain from leveraging the BISA community to share information, news and best practices?

CM: We have early, mid- and late-career professionals as part of the BISA ROCS community. The ROCS community has somebody who has experienced a similar challenge you may be going through in your business. This could be part of a regulatory examination or an internal audit. We strive support BISA’s values as an inclusive, supportive and educational organization.

RB: The variety and breadth of experience in the roles represented brings a great amount of insight to the greater group to be able to leverage. Hearing from peers, comparing regulatory experiences and sharing solutions provide tremendous value.

What advice would ROCS offer to firms seeking to strengthen their approach to risk, operations, compliance and supervision?

CM: Start to attend some of the monthly conference calls to gain a feel for the types of discussions. Then attend the 2025 Regulatory & Compliance Summit in November to hear from regulators, industry leaders and your peers. By the time the 2026 BISA Annual Conference arrives, you will feel ready to get involved with BISA ROCS in a larger role. This is industry peer learning at its best!