On the Record: Compliance is at forefront for Foreside Financial President David Whitaker
Photo / Tim Greenway
David Whitaker is president of Foreside Financial Group LLC in Portland.
David Whitaker is president of Foreside Financial Group LLC, a Portland-based provider of customized compliance and technology solutions whose clients include global asset managers, wealth managers, private equity firms and hedge funds. Mainebiz caught up with him to find out more about what the firm does and its acquisition strategy.
Mainebiz: When it comes to compliance, what are the most common mistakes companies make?
David Whitaker: One common mistake we see is individuals at firms wearing too many hats — performing more than one function and attempting to balance multiple roles and responsibilities. From a compliance standpoint, this heightens the risk of potential regulatory issues. A firm’s lack of attention to compliance is also a red flag for the state and federal regulators. As the regulatory landscape changes and becomes more sophisticated, firms should consider hiring dedicated compliance professionals or prioritize outsourcing these functions to a firm like Foreside.
MB: Can you give any examples where Foreside has provided advice?
DW: A great example is of a global financial platform partnering with Foreside to support their blockchain technology initiatives. We are also providing our expertise to clients looking to bring clean energy and socially responsible investment products to the individual investor. Recently, a London-based financial services firm hired Foreside to build and support all the necessary compliance and distribution infrastructure to provide their investment services in the U.S.
MB: What corporate compliance areas do you see growing the fastest?
DW: We have seen a large uptick in firms requiring assistance developing their compliance programs to incorporate important aspects of environmental, social and governance initiatives. Other areas that firms need to keep their focus on include changing privacy rules in light of transformative technology, and addressing enhanced policies and procedures regarding diversity, equality and inclusion.
MB: With so many out-of-state clients, what’s the main value of a Maine HQ?
DW: Maine offers a great talent pool, prestigious colleges and universities for recruitment, an excellent quality of life and attractive cost of living for our employees. Maine’s access to Boston, New York and other major financial centers makes it easy to see our clients.
MB: What’s your main criteria in identifying potential acquisitions?
DW: Since 2019, we have acquired six firms across the U.S., each complementing or expanding our current service offering. When looking to acquire firms, we always look closely at the people and culture. All acquisitions must achieve the objective of strengthening our position in the regulatory consulting industry and further expanding our suite of offerings.
MB: Some firms recently you acquired are headed by women. Was that intentional?
DW: Diversity and inclusion are a big initiative at Foreside, and we are proud to foster an environment that encourages this by providing equal opportunities to all social, economic and cultural backgrounds. In total, more than half of all employees at our firm are women. Foreside’s executive management team is 40% women; 55% of our managing directors are women. The women-owned firms that we recently acquired were already highly regarded and successful practices. These were great strategic fits for our firm and culture.
MB: What about other efforts to bring more diversity to your workforce?
DW: Foreside has empowered and educated managers and created diversity-friendly workforce policies and mentorship programs. In 2020, and in response to the Black Lives Matter movement, Foreside launched an initiative to allow employees a full paid day off to give back to their community by volunteering with an organization that is meaningful to them. Foreside also enhanced our current internship program to advance our commitment to diversity and inclusion by specifically expanding our outreach to include Historically Black Colleges and Universities for internship candidates.
MB: To what extent will the pace of acquisitions continue?
DW: We see a tremendous opportunity in our space, and will certainly pursue those opportunities that are aligned with our business objectives.
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