Damayanti Shahani is a senior lawyer and compliance professional with more than 20 years of experience in both the private and public capital markets. She is the Founder and Managing Director of Principium, a compliance consulting firm that provides regulatory compliance consulting support to the financial services industry particularly in the fund management arena.
In the past, Damayanti has had a long career and has held leadership roles at blue-chip consulting and law firms in Singapore, New York and Mumbai in the capital markets service lines. Her clients have included Funds and Fund Managers, Family Offices, Banks, Broker-dealers, Fintech companies, Start-ups and Fortune 500 companies. She has also advised clients on some ‘firsts’ in the funds and capital markets space-both on the regulatory and transactional sides. Damayanti has also worked at the US SEC in Washington DC in the Division of Corporation Finance.
Damayanti is called to the bar in a few jurisdictions. She has a Master of Laws degree with a specialisation in Securities & Financial Regulation, on the Dean’s List and with Distinction, from Georgetown University in Washington DC. Damayanti obtained her B.A.LL.B. (Hons) degree from India’s premier law school, the National Law School.
She regularly contributes to thought leadership and development of the asset management industry in Singapore, via publications and industry speaking engagements. Damayanti sits on the Executive Committee of the Singapore Fund Directors Association (SFDA), where she leads the DEI sub-committee. She is also a member of the Singapore Impact Committee of 100 Women in Finance, where she was Chair until recently.
Principium (Latin)=A fundamental principle
PRINCIPIUM CONSULTING provides compliance consulting support to clients as they comply with fundamental principles of the MAS’s regulatory framework. It is also Principium’s fundamental principle to serve clients holistically and to be their trusted compliance expert.
Principium’s mission is to provide relevant and practical compliance consulting support to clients in the financial services industry.
Mike Sim (MS): What inspired you to venture into the field of compliance consulting, and how did your passion and skills translate into this area?
Damayanti Shahani (DS): My professional journey started way back in 1997 as a then newly- minted lawyer. I worked in law firms mainly in Singapore and also in New York and Mumbai for over a decade in the capital markets transactions space. During those years, I went back to law school (in the US) and obtained a Master of Laws degree with a specialisation in Securities & Financial Regulation which was an up-and-coming topic then. While in the US, I also had a stint working at the US Securities & Exchange Commission (SEC), which was my first up close experience with a regulator. After the US, I returned to Singapore where among other financial industry sectors, the fund and asset management sector was growing.
With the combination of my interest in black-letter law and regulations and the financial industry’s increasing need for compliance services, I ventured into compliance consulting with a global compliance consulting firm. Fast forward a few years later, I was bitten by the entrepreneurial bug and founded Principium.
MS: Could you elaborate on the key skills and experiences from your previous roles that have been instrumental in your success as a compliance consultant?
DS: My years working as a lawyer gave me an understanding of how regulatory frameworks work, a foundation for technically understanding regulations and the training for communicating these to clients. Law firm life also trained me to work both smart and hard.
These key skills helped me when I transitioned to what was a new space for me and the industry at that time i.e. compliance consulting and onwards to my entrepreneurial role as Founder-MD of Principium. They continue to be a huge asset for me today as well.
MS: As the Founder and Managing Director of Principium Consulting, what do you consider to be your biggest challenge in setting up the firm, and how did you overcome it?
DS: Going entrepreneurial is not easy, especially when you are setting up a venture organically. It has a variety of challenges.
Principium: Proactive | Principle | Practical
For starters and I am pretty sure most founders will say this, there is a need for humility and patience. When setting up your own enterprise, you are essentially going back to basics. That means being willing to wait for your business and brand to become established. That also means you have to be able to take rejection especially in the early years when your firm may not be well-known in the industry.
That said, I firmly believe that if you are sincere and quality-oriented, there is a market out there for you. These challenges can be great teachers in an entrepreneurial journey. I have enjoyed my entrepreneurial journey and most challenges have been opportunities for learning and progress.
MS: What is your outlook for the regulatory compliance industry, particularly in light of emerging trends such as ESG (Environmental, Social, and Governance) considerations and the increasing adoption of AI in compliance processes?
DS: The industry is dynamic. Regulations change, new regulations are introduced, the industry and businesses change.
Given how dynamic it is, I could have a different response on outlook if you ask me the same question next year! But for now, yes, ESG, technology, AI, privacy etc are all key trends that we need to be aware of. The key is also to ascertain how these emerging trends apply and can fit in a particular firm because it needs to be relevant and suitable to each one’s business model. Firms also need to consider these trends from a product design and ongoing lifecycle point of view too and let’s not forget from a budgetary perspective too.
Damayanti speaking as a panellist at Deloitte’s event.
MS: In your experience, what are some common misconceptions or pitfalls that organizations encounter when it comes to regulatory compliance, and how do you help them avoid or overcome these?
DS: Well, the importance of compliance is pretty well-established but if I were to discuss a few mixed perceptions, for one, I would say that compliance is not just about filling forms and ticking boxes. Sure, those are important features of compliance too but there is a whole lot more cutting across internal policies, frameworks, training, governance, compliance culture etc-many of these do not require forms to be filled but rather practices that apply across the firm.
I would also clarify that compliance matters are not a ‘compliance team-only’ or ‘controls team-only’ concern. Compliance should permeate across the business/firm from a firm-culture perspective.
MS: What steps do you take to ensure that your clients stay abreast of regulatory changes and developments, and how do you assist them in adapting their compliance programs accordingly?
DS: It is our job to stay abreast of regulatory changes and update our clients. The value add that Principium brings is that we do not merely state that a regulation has changed. We go much beyond that by understanding and practically supporting clients as they comply with changing regulations.
That might result in changes to policies, enhanced training etc, to name a few practical outcomes of regulatory changes.
MS: How do you approach compliance training for your clients’ employees, and what strategies do you employ to ensure effective knowledge transfer and retention?
DS: Compliance training is an important feature of a compliance program. It should be rolled out at employee onboarding and refreshed periodically. Some training requirements are mandated by regulatory requirements (eg AML training) while others may stem from a firm’s internal or group compliance practices.
From our perspective, allocating time to provide compliance training is as important as drafting good compliance policies. They go hand in hand. A policy is a large document with several topics. Bringing it all home is best done in a compliance training session.
MS: What role do you see Principium Consulting playing in promoting industry-wide awareness and knowledge of compliance and regulations, and what initiatives do you undertake in this regard?
DS: In addition to my work, I am happy to share knowledge via articles that I have written in the business news and other publications.
I also serve on a few industry associations and bodies, where I am glad to have the opportunity of conducting training, moderating panel discussions and organising events. This includes my role as a member of the ExCo of the Singapore Fund Directors Association (SFDA) and 100 Women Finance Singapore’s Impact Committee. Volunteering with such associations also allows for an exchange of ideas among members and participants which is a fertile ground for learning.
MS: As a leader in the compliance consulting field, what advice would you give to aspiring professionals looking to pursue a career in regulatory compliance?
DS: Happy to share my 2 cents:
- Point 1: Technical Knowledge – there is no substitute; you need to know your subject and your industry. One has to read, understand and apply.
- Point 2: Readiness to communicate and explain regulations and compliance to your audience. This includes both written and oral communication.
- Point 3: Don’t hesitate to keep learning – given the dynamic nature of regulations, being open to self-learning on an ongoing basis, will be helpful.
MS: Could you share some insights into your approach to conducting mock audits and reviews for clients, and how you help them prepare for potential regulatory audits or inspections?
DS: There are various ways this can be conducted including mock audits and compliance reviews. Think of it like going for a periodic, routine check up to the doctor’s clinic, which is a healthy practice. Compliance reviews help the client and service provider assess how the firm’s compliance program is faring periodically or in view of specific events like a new product launch.
Scoping is key-how deep and wide does the review need to be in order to make the above assessment. Execution planning and timelines should also be agreed with your client so that they are not put out with documentary and Q&A requests as they need to manage the compliance review alongside their regular duties.
Being well organised is key in order to execute the compliance review efficiently and in a timely manner.
Mike Sim with Damayanti
Thank you, Damayanti for taking time to share your insights on Regulatory Compliance and sharing Principium Consulting’s Journey!
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