Acquisition enhances ACA’s technology solutions to support day-to-day compliance requirements and reduce risk

ACA Group (ACA), the leading provider of governance, risk, and compliance (GRC) solutions to clients in the financial services industry, announced the acquisition of Encore Compliance (Encore), a leader in AI compliance software solutions. This acquisition enhances ACA’s Managed Services suite of people, processes, and technology, adding AI-enabled surveillance for expert network chaperoning and research calls to help asset managers and investment advisors comply with SEC, FCA, and ESMA regulations. Additionally, this technology can enable research teams to create their own expert libraries and identify potential risks in other voice communications subject to heightened regulatory oversight, aimed to strengthen overall compliance controls.

In the U.S., the SEC has intensified its scrutiny on firms' use of expert networks and alternative data under Section 204A of the Investment Advisers Act. This heightened focus has also been felt in Europe under the Market Abuse Regulation (MAR). Overall, Encore helps compliance teams monitor and protect against material non-public information (MNPI) related risks of multiple compliance regimes.

This technology creates a highly efficient, insight-driven operation for compliance and investment teams, who can now leverage the technology directly or through ACA’s Managed Services Team. Users benefit from accurate and timely insights, comprehensive compliance-reviewed call summaries and transcripts, and automatic transcription and review of expert calls. AI technology meticulously identifies potential areas of concern, strengthening proactive risk management and enabling research teams to drive alpha generation through improved data quality.

“The acquisition of Encore Compliance represents a significant milestone for ACA Group,” said Patrick Olson, Chief Executive Officer, ACA Group. “This strategic move not only expands our suite of Managed Services but also underscores our dedication to integrating AI-driven solutions that enhance compliance and operational efficiency for our clients. With Encore’s advanced technology, available both through our Managed Services team and as a standalone solution, we are empowering our clients to navigate regulatory challenges and ensure robust compliance in a complex environment.”

“We are excited to join forces with ACA Group, bringing our sophisticated technology to a broader audience," said Scott DePetris, Co-Founder, Chairman, and Chief Executive Officer of Encore Compliance. "Our AI-enabled services will seamlessly complement ACA’s existing offerings, providing comprehensive and efficient compliance solutions. Together, we are poised to redefine the industry standard for expert call management and compliance risk mitigation.”

ACA has been providing expert network call chaperoning for over six years. With this acquisition, ACA’s Managed Services will gain an additional level of AI-enabled review, enhancing the call chaperoning process and providing clients with a more comprehensive solution. ACA’s Managed Services suite offers specialized solutions to support day-to-day compliance requirements, which can be paired with ACA ComplianceAlpha^®, a comprehensive regulatory technology platform for financial services firms. This technology integrates risk and compliance management activities, trade and electronic communications surveillance and monitoring, compliance program testing, and in-depth analytics, streamlining compliance management responsibilities for risk and compliance teams.

Financial terms were not disclosed.

About ACA Group

ACA Group (ACA) is the leading governance, risk, and compliance (GRC) advisor in financial services. For over 20 years, we’ve empowered our clients to launch, grow, and protect their business. Our global team of 1,250 employees includes former regulators and practitioners with a deep understanding of the regulatory landscape. Our innovative approach integrates advisory, managed services, distribution solutions, and analytics with our ComplianceAlpha® technology platform. For more information, visit https://www.acaglobal.com.

About Encore Compliance

Founded by leading experts in compliance and research, Encore Compliance is at the forefront of redefining expert call surveillance. By enabling compliance officers to effectively manage risk with its pioneering Generative AI technology, Encore Compliance ensures protection against MNPI risks and empowers research teams to build a proprietary research call library. With a focus on innovation and excellence, Encore Compliance is dedicated to transforming the industry's approach to expert call management.

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