Hervé Ballone, Vincent Salzinger, Marie Bourlond (ALCO) : An Alliance in Compliance
The three presidents of ALCO, Hervé Ballone, Chief Compliance Officer and Head of CIM Europe (Carlyle), Vincent Salzinger, Chief Compliance Officer at Crédit Suisse, and Marie Bourlond, Chief Compliance Officer at BIL, explain how ALCO ensures sustainability, regulatory compliance, and collaborates on knowledge sharing to save costs and safeguard members’ standards.
How does ALCO's governance ensure long-term sustainability?
ALCO reinvents itself year-to-year as the dynamic discipline of governance evolves. Nothing is set in stone. The three-headed presidency represents markets in phase with the sectors that members represent. Banks constitute 24% and management companies 31% so we ensure that the Board and the Advisory Directors reflect industries in proportion to membership. As a further reflection of the ever-changing face of governance and the need to ensure long-term stability, ALCO creates new working groups and training courses in line with current topics. In 2023, ALCO continues reinforcing & developing the offers with the implementation of the “RC capacity certificate program” tailor made by industry type.
Training topics offered via House of Training include “Compliance – the Fundamentals” providing a good understanding and familiarity with the code of conduct. More advanced Master Classes interactively assess group collaboration and individual competencies.
“ALCO’s vocation is to respond to regulatory issues, using the channels available to identify, understand, and find the appropriate response to regulatory changes.”
How does ALCO enable its members to keep pace with ever-changing regulations?
ALCO’s vocation is to respond to regulatory issues, using the channels available to identify, understand, and find the appropriate response to regulatory changes. The lifeblood of our determination to keep members up to date are our multiple and diverse working groups. We have permanent working groups by industry to monitor regulatory developments and discuss regulators' expectations and ad hoc working groups addressing current issues, such as ESG. We also conduct webinars and roundtables on topical issues to strengthen ties and share experiences. ALCO is at the heart of several industry committees that have regular contact with regulatory bodies such as the CSSF, CAA, and AED; these committees pass on information and keep members informed.
"How does ALCO pool members' experience in dealing with KYC, ESG, and cross-border activities?" - Marie Bourlond
ALCO strongly encourages share of knowledge and expertise between its members as well as the definition of agreed minimum standards avoiding that each and every Chief Compliance Officer creates its own ones. It is particularly important for smaller entities that cannot afford developing in-depth expertise in all Compliance areas. The industry shall certainly go beyond this common guidance and mutualize specific operational tasks and activities. Industrializing precise operational processes will enable firms to focus on what are their own true added value. Beside saving cost, you create at the same time a level playing field on key processes across the industry. There are some interesting initiatives especially in the Know Your Client area. It is also to be noted that the client experience is at the heart of such projects that aims at enabling the clients to save time and speeding up the onboarding and periodical review processes.