EP #245: Kevin Rowe from the Compliance Network: Navigating Financial Regulations
May 23, 2024
Jeremy Wolf
Navigating the treacherous waters of financial regulatory compliance can be a nightmare for even the most seasoned professionals, which is why we brought in Kevin Rowe, a guru from the Compliance Network, to chart a course through the storm. As we sit down with Kevin, he recounts the tale of stock market regulations' evolution, offering a lifeline to investment advisors and broker-dealers who might otherwise be swallowed by the sea of rules. His own voyage from regulator to entrepreneur unfurls, revealing the tenacity needed to brave the currents of launching a business, and the fulfillment found in contributing to a secure market.
Strap in as I also take you on a detour through the chaotic yet rewarding life of parenting teens, where being a family chauffeur is just part of the daily hustle. It's a reminder to sometimes drop anchor and appreciate the simple pleasures—like our local parks and the art of unplugging. As we salute Kevin for his wisdom and wave goodbye, we set sail towards our next port of call, the Good Neighbor Podcast, where we spotlight the heart and soul of Cooper City’s community. Don’t forget to nominate your favorite local heroes who are the real treasures of our neighborhoods.
Navigating the treacherous waters of financial regulatory compliance can be a nightmare for even the most seasoned professionals, which is why we brought in Kevin Rowe, a guru from the Compliance Network, to chart a course through the storm. As we sit down with Kevin, he recounts the tale of stock market regulations' evolution, offering a lifeline to investment advisors and broker-dealers who might otherwise be swallowed by the sea of rules. His own voyage from regulator to entrepreneur unfurls, revealing the tenacity needed to brave the currents of launching a business, and the fulfillment found in contributing to a secure market.
Strap in as I also take you on a detour through the chaotic yet rewarding life of parenting teens, where being a family chauffeur is just part of the daily hustle. It's a reminder to sometimes drop anchor and appreciate the simple pleasures—like our local parks and the art of unplugging. As we salute Kevin for his wisdom and wave goodbye, we set sail towards our next port of call, the Good Neighbor Podcast, where we spotlight the heart and soul of Cooper City’s community. Don’t forget to nominate your favorite local heroes who are the real treasures of our neighborhoods.
This is the Good Neighbor Podcast, the place where local businesses and neighbors come together. Here's your host, Jeremy Wolfe.
Speaker 2:
Hello, hello, friends, family, great community. Welcome to the Good Neighbor Podcast. I'm your host, jeremy Wolfe, and you know today it's getting close to Friday, it's Thursday, I'm feeling a little bit like an outlaw, like a renegade, and our next guest is going to reign me in Sitting here with Kevin Rowe, and Kevin is with the Compliance Network. He's going to make me comply today, right, kevin?
Speaker 3:
That's right, Jeremy.
Speaker 2:
Thanks for having me.
Speaker 3:
I look forward to our conversation.
Speaker 2:
Yeah, man, me too. It's our pleasure, and I'm excited to get into this, because I said that like tongue in cheek. I really don't know much about what you do. So, with that said, why don't you share with our listeners a little bit about what the Compliance Network is, what you do, and then we'll kind of get into the backstory behind it?
Speaker 3:
Sure, absolutely so. The Compliance Network is a regulatory compliance consulting firm, so we work with investment advisors and broker dealers. So we're talking stock market. So, way back when the first trade was ever recorded in the US in New York City on May 17th of 19, or, excuse me, 1792, there's always been rules. And so we look at the early rule. You look at the Buttonwood Agreement, which said that only members of this new consortium could trade securities, and the goal there was to ensure a level of trust and accountability among the traders. And so, as you can imagine, if we fast forward to 2024, the rules and the environment has become more complex. So our company was created to help those clients follow the rules, and those rules are important because it helps keep the stock market and investors, like our listeners, safe.
Speaker 2:
Absolutely, and that's one of those industries with finance that's so highly regulated. I do marketing outside of this and financial advisors that I speak with they all tell me there's so much red tape and regulations. Anytime they put a piece of content out there, it's got to be all the T's got to be crossed, I's got to be dotted. So a lot of regulatory framework in place there. So, going back, how did you end up getting into this line of work, this business? What's your background and how did you get? How did you start the Compliance Network? When did that happen for you?
Speaker 3:
Well, the Compliance Network was started in July of 2014. So we're coming up on our 10th year in business, so we're really excited about that here. My journey was probably no different than most right. You work a job and you get experience and a door opens, and if you're brave enough to walk through that door which I did then you're sitting here 10 years later. You know, talking about what it is that you and your team have been able to create.
Speaker 2:
So what was that job that you were involved with 10 years ago when the store opened for you?
Speaker 3:
I was a supervisor director level and a broker dealer here in Florida and basically, you know, the glass ceiling was at my waist and I wanted to take a leap of faith, and the leap of faith led me to the compliance network. It started out really slow, you know. I received a referral and then it started. The dominoes started to fall. We went from one client to two clients, three clients and so, as you can imagine, it becomes a lot with the work. So then you have to start bringing people in and finding like-minded entrepreneurial spirit type of individuals.
Speaker 2:
So you were in this space before. Is that something that you had an issue with dealing in the industry, with compliance, that kind of a pain point for you? And then this opportunity presented itself. You said, wait, I could actually kind of help people navigate this space. Is that? What kind of was the impetus for launching Compliance Network?
Speaker 3:
Yes, absolutely. I had the pleasure and the privilege and honor of working for the Financial Industry Regulatory Authority, which is the primary self-regulatory organization for broker-dealers. I was able to serve with them and had an opportunity to see compliance programs in all different types of design and set up to adhere to these rules. So you know it just. It became almost like a challenge in the sense of understanding and appreciating the mission of FINRA to help those that were maybe having troubles or challenges doing it comply with the rules, because when everyone complies with the rules, then our market is able to do incredible things, like we just saw the market hit 40,000. So there's a lot of hard work that goes into all of the market behind the scenes and, obviously, with our regulatory authorities. It's important for us to make sure that we follow the rules, and so if I can help a client follow the rules, then that helps an investor get to the market and realize a financial opportunity or investment that they are seeking out.
Speaker 2:
So how do you typically get brought in to work with the business? What is it that a business would be struggling with that would cause them to start thinking they need to get somebody from an outside agency and to help them with compliance issues Like what's your ideal profile, client profile or ideal client type.
Speaker 3:
Primarily those who are just starting out. You know they have an ambition and they want to establish a registered investment advisor, let's just say, in the state of Florida. So we help guide them and provide them with our knowledge and understanding of what our regulators are looking for, and we give them a schedule and then we follow that schedule all the way through until they reach their objective.
Speaker 2:
Interesting. What are some common, I guess, struggles that you see from your clients that come in? Maybe they're like you said, they're starting off and they're trying to get a handle on this. What are some things that they struggle with that you help with?
Speaker 3:
There are a lot of rules and they can sound complex, and so, based on our team's experience, we help them understand what the regulator's expectations are and what those rules are. Now, we're not attorneys, so we don't give legal advice. However, in practice, compliance officers aren't required to be attorneys, because it's not an interpretation of a rule, it's simply the application of a rule. So we help our clients apply policies and procedures that will provide them with the proper application to be in compliance with the rule.
Speaker 2:
And now you're providing service, I'd imagine. Location doesn't necessarily. Are you operating specifically in South Florida area or do you help people nationwide? Where do you draw business from?
Speaker 3:
Nationwide. We are nationwide international as well. We have an affiliate compliance network, LATAM, which utilizes resources in Argentina, for example. So we have grown into, over the last 10 years, an international business, and that's something that was one of our objectives when I first started out.
Speaker 2:
Well, that's pretty impressive, because just the laws inside the US alone are very complex, but now you're talking about entering into other markets in different parts of the world. That's a whole new, a whole nother animal. How long ago did you start expanding internationally?
Speaker 3:
Yeah, We've been expanding internationally for two years now and I'll tell you, when I was first starting out and I had this kind of goal or this dream placed in my heart, I got really sound advice, and it was hey, always have money for, or have reserves for, accountants, lawyers and doctors. They have played a huge role in allowing me to get to this point, and then our team as well. Our team in Argentina consists of two lawyers and human resources professionals, so just having an understanding of the marketplace and being introduced into that marketplace has been really good for us.
Speaker 2:
Very cool, very good. It's interesting. I never gave it much thought about what you do, I guess because I'm not in the space, but it's interesting to know that you're out there doing what you do. That's good stuff. So go back, take the time machine back 10 years ago. 10 years ago, 2014,. You took that leap of faith, you broke into that glass ceiling and what was one of the biggest challenges from I guess it sounds like you were kind of in the corporate world prior to that from that into taking that leap of faith into becoming an entrepreneur and starting your own business. And on the other side of that, what's been the biggest reward after having done this, for coming up on your 10-year anniversary? Sure.
Speaker 3:
I would say the bigger part that I didn't expect was the amount of planning that you have to do. You want to have resources and tools readily accessible for yourself and then as that journey, you know, grows, then obviously you have to bring people on to help and when those folks come on, you know that you just don't say, hey, what are you going to do? You know so. You have to have a plan. So planning and understanding your tools, your resources, are paramount and have been paramount for me and my journey. And I would say the most kind of rewarding aspect so far is the value that we've added to the industry. You know, by helping our clients remain compliant and enforcing their policies and procedures. Then it allows for investors and their clients to have an opportunity to invest in the market and that's very important to me.
Speaker 2:
What do you like to do for fun when you're not working, Kevin? What do you like to do in your downtime? Maybe talk a little bit about your family.
Speaker 3:
Sure, absolutely so. I have two great kids, teenagers at this point. So teenager, how old? 17 and almost well, 15, 17 and 15.
Speaker 2:
Stop there for a second. I need to dig into this a little bit further. I am the proud parent of a 10-year-old and a 12-year-old, or soon to be 10-year-old, and a 12-year-old daughter who just finished her first year of middle school. First of all, are you, boy, girl, one of each. What?
Speaker 3:
here in middle school. First of all, are you boy, girl? One of each. What do you got?
Speaker 2:
One of each, one of each my son's 17, my daughter's 15. Okay, so you're backwards from where I'm at. I got the older, the daughter is older. Okay, what am I looking? What am I to expect here? You're two, three years ahead of me, or five years ahead of me, whatever it is. What am I to look forward to? What am I to be concerned about, with these two kids entering those years?
Speaker 3:
Give me some wisdom brother, it's not even about the kids at that point, it's all about maintaining your car. So you're going to become a taxi slash, uber driver. So make sure you stay up on your oil changes and your tires and your spark plugs, because it's a lot of my. My son is driving now, but you know uh still a lot of driving for for the younger ones. So uh, definitely prepare yourself uh to to be active behind the wheel.
Speaker 2:
Right, that's. That's the only time they do want to actually see you or hang out with you. It's like, oh, give me a ride somewhere, but other than that it's like, oh, get away from me, I don't want to, I don't want to be you're. You're embarrassed me, daddy absolutely.
Speaker 3:
And then it's full of music. So you know, enjoy, enjoy it now yeah, I'm already.
Speaker 2:
I've already been exposed to the music they listen to. I'm not, I'm not, so thrilled about that at this point yeah, exactly, exactly so so yeah, what do you like to do in your downtime for fun with the family?
Speaker 3:
so, uh, you know, we we enjoy, uh, we're on a fitness journey. Uh, so we enjoy, uh, you know, working out out together and having an opportunity to to challenge ourselves physically, and then, obviously, with the work in school, we're all getting mental challenges. We like to be at the parks. You know South Florida is has so many beautiful parks, and some of them are a dollar or two dollars, but most are free, and so we enjoy taking in the resources around Florida and, of course, the beach right Like the beach is awesome, and so we've got to keep our waterways clean.
Speaker 2:
Absolutely. I was just talking to the wife she just mentioned. She said we should go do like a little camping trip. Maybe not, maybe not in the summer, but do a little camping trip with the family, get back to nature and it's important nowadays to get out there with everybody plugged into electronics all the time, it's just important to disconnect. I've been more conscious lately to try to leave my phone away from me whenever.
Speaker 2:
I can, I'll just leave it upstairs charging for a few hours just to unplug and get back into back into nature. So, kevin, before we wrap up here, what would be if you had to pick one thing? It could be look, it could be about the business, if you want, it could be about just life in general. Just one piece of wisdom, one thing you'd like to leave our listeners with before we wrap this one up.
Speaker 3:
I would say one I guess thought here is knowledge is power, and so if you are an investor or you work with investment advisors or brokers or broker dealers and you're a securities trader, use the resources that the regulators put out there. Example FINRA has broker check. You can go out to and Google FINRA F-I-N-R-A, which is the acronym for Financial Industry Regulatory Authority broker check, and you can pull up your broker and the brokerage firm. And then there's also the SEC's investment advisor search tool that allows for you to go out and to review different independent or investment advisors and investment advisor firms. There's a lot of information. The form CRS tells you about the fees and what you should expect in conflicts of interest. So all good things to arm yourself as an investor, free resources provided by the regulators that all of our clients and firms are required to participate in, and we believe it's a very great resource and tool to help maintain the efficiency, integrity and transparency of the US capital markets.
Speaker 2:
For anyone out there listening that is maybe trying to start up in this space and they need to get some advice. They need to learn more. How can they reach you? Maybe share your website and your contact information for our listeners.
Speaker 3:
Sure, you can follow us on social media at Compliance Network. It's Compliance and then a period network and that's also our website, so you can find us at wwwcompliancenetwork.
Speaker 2:
Perfect. We will, of course, put a link in the description to all of your contact information. Kevin, thanks so much for joining us today. It was a pleasure getting the opportunity to meet you and learn a little bit about what you do and your story. So happy to have you on the show, brother. Thanks for coming, thank you so much, Jeremy. Of course, and thanks to our listeners for tuning in, and we will catch everybody next time, on the next episode of the Good Neighbor Podcast. Everyone, have a wonderful day and take care.
Speaker 1:
Thanks for listening to the Good Neighbor Podcast, cooper City. To nominate your favorite local business to be featured on the show, go to GNPCooperCitycom. That's GNPCooperCitycom, or call 954-231-3170.
