Fennel is a venture capital-backed fintech company specializing in financial software. Founded in 2021, Fennel is headquartered in New York and employs around 25 people.
The company was established by Daniel Naim and focuses on providing a mobile investing platform that emphasizes transparency and sustainability, allowing users to understand the environmental, social, and governance (ESG) impacts of their investments. The company has raised $8.5 million in funding and aims to empower investors with detailed ESG data and insights.
Objective
Fennel sought to address a critical gap in senior leadership by appointing an interim outsourced Chief Compliance Officer (CCO) to set up and enhance compliance workflows while onboarding a full-time, in-house CCO.
Background
The client, a fast-growing startup broker-dealer, was in the midst of expanding its client base and entering the next phase of growth. Despite their success, the lack of a CCO significantly threatened the firm's regulatory integrity and operational effectiveness. This critical gap in senior leadership increased regulatory risks and had the potential to hinder the company’s growth.
Recognizing the need for immediate compliance support, Fennel sought InnReg’s expertise to navigate this challenging period.
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Challenges
Fennel was confronted with three key challenges. They needed to:
Immediately hire a competent and professional CCO on an interim basis.
Establish robust compliance workflows to streamline operations, promote transparency, and ensure continued adherence to regulatory standards.
Facilitate the onboarding process for the hired, permanent CCO, ensuring a seamless transition and immediate effectiveness in the role.
InnReg's Solution
Our team of outsourced compliance experts addressed Fennel's challenges with a comprehensive approach:
Interim CCO Support: We immediately filled the leadership void by appointing one of our seasoned compliance professionals as interim CCO. Leveraging their extensive industry experience, they guided Fennel through complex regulatory landscapes.
Compliance Workflow Setup: We thoroughly analyzed Fennel's operations and developed tailored compliance workflows. These workflows were designed to improve processing efficiency and enhance risk management.
New CCO Onboarding Support: As the broker-dealer hired a permanent CCO, we facilitated the transition by providing comprehensive training on the established compliance workflows and offering insights into evolving regulatory requirements.
Client Results
Our engagement with Fennel resulted in significant and tangible outcomes:
Continuous Compliance: With the interim CCO in place, Fennel maintained compliance with all necessary regulations, preventing potential violations and associated penalties.
Enhanced Operations Efficiency: The new compliance workflows streamlined operations, reduced errors, and increased transparency, leading to greater operational efficiency and risk reduction.
Smooth Transition: The onboarding process for the new CCO was efficient, ensuring the firm's ongoing compliance and operational effectiveness. The new CCO quickly adapted to the new role, fully equipped with a deep understanding of Fennel's compliance workflows and regulatory requirements.
This engagement exemplifies our commitment to providing comprehensive, tailored compliance solutions that empower financial firms to operate efficiently, maintain regulatory compliance, and navigate growth stages with confidence.
