Why should the trust compliance officer act as a liaison with the preliminary bank regulator?

The trust compliance officer serves as a critical link between the organization and the preliminary bank regulator, mainly through their ability to monitor the examination scope and demonstrate compliance effectiveness. This role is essential because the compliance officer can provide regulators with the information needed to understand the trust's operations and regulatory adherence.

The ability to effectively monitor the examination scope allows the trust compliance officer to prepare for and navigate regulatory reviews more efficiently. They can ensure that the organization is aligned with regulatory expectations and that the processes in place are robust and compliant. By demonstrating compliance effectiveness, the compliance officer can convince regulators of the trust's commitment to following regulations, which can foster a cooperative relationship.

This liaison role is vital for facilitating communication and understanding between the trust organization and regulators, ultimately contributing to a more effective compliance posture and smoother regulatory examinations.