About LexAlign PBC
LexAlign helps small and medium-sized companies achieve and maintain compliance by solving the Paradox of Compliance.
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The Par·a·dox of Com·pli·ance: The smaller the company, the greater the risks from noncompliance, but the more unattainable compliance becomes.
Smaller companies face potentially overwhelming risk in the event they are sued or audited for compliance: violating laws that protect consumers or promote national security can result in huge fines, longterm reputational harm, even prison terms. Regulations affect nearly everything a business does. Yet obtaining useful and accurate guidance on what the law requires is almost impossible. It's like needing a small car that fits a hardworking person's budget, but the few cars on sale are all handmade, luxury SUVs. Sure, you can try to copy another company's notices or buy a document online, but that hardly meets the legal requirements, and it could even add risk for negligence.
LexAlign solves the Paradox of Compliance. Read on to find out how.
LexAlign helps businesses build their compliance manuals and align their practices to what the law requires. It is a set of online tools designed to help business managers understand what their companies should be doing in light of pertinent statutes, regulations and regulator guidance. The tools are divided by business aspect or area of law—for example, Federal Financial Privacy or Underwriting.
To use LexAlign, you simply need to know what your company is doing or planning to do. No prior knowledge of the law is required. After clicking on a particular tool, you will be led through a dynamic set of simple multiple-choice questions about those business activities. Once the system has the information it needs, it stops asking questions and takes you to a page with various products. The products contain required documents and useful and clear guidance on what the law requires of a business that matches your responses. The products vary by business aspect or area of law, but generally include:
- a company-specific Policy, detailing how you comply with that area of law, as necessary for your compliance manual
- a Consumer Notice (such as a privacy notice or adverse action notice), tailored to your specific activities
- a Checklist of requirements that you can use to identify gaps in your compliance coverage, to create internal procedures and training materials, or to assess whether another vendor's solution is appropriate for your business.
LexAlign is designed to be a more time- and cost-efficient, effective and complete alternative to other self-help options. As such, LexAlign does not aim to replace the services of a bona fide regulatory expert who thoroughly investigates a company's business practices and prepares customized advice on what it should do. But LexAlign can nonetheless help you attain and maintain compliance with regulations that are very complicated and always subject to change. And it aims to do that in a way that is light years ahead of any alternative in terms of cost and time required. In fact, given the risks that come with not being in compliance, you really can't afford not to use LexAlign. (LexAlign is currently in beta testing. If you'd like to participate, please contact us.)
In addition to the guidance products described in “How LexAlign Works," LexAlign is developing industry-specific audit tools and applications.
The audit tools are designed to determine where a company might need to enhance its policies, notices, procedures and operations to manage its compliance risk, and remediate past errors. Companies that use the LexAlign audit products may designate persons outside the company who may access the audit reports. In this way, a company might show its stakeholders – including creditors, investors and/or regulators – that it is being responsible in managing its compliance.
The LexAlign applications are designed to help businesses manage compliance with particular laws on an ongoing basis.
LexAlign is a public benefit corporation, or PBC. To be a PBC, a company must have as its purpose a mission with a public benefit component. LexAlign's mission is (1) to facilitate compliance with laws that protect consumers or promote national or economic security, and (2) by doing so, to help foster innovation and competition in regulated markets. The LexAlign tools and products are made commercially available via an exclusive arrangement with LexAlign LLC.