Expert Network Compliance & Screening

The buyer problem

Compliance failures in expert-network engagements carry real regulatory and reputational risk, particularly for investment firms subject to insider-trading rules. Yet compliance screening is one of the hardest things for a buyer to evaluate from the outside: every network claims to have it, but few buyers know what a genuine screening workflow actually involves versus a superficial checkbox. The 2023 raid on expert network Capvision by Chinese state security authorities is a concrete reminder that compliance and legal exposure in this category are not theoretical.

What expert network compliance & screening means

A network's compliance function typically runs in three stages. Before a call, the network screens a proposed expert against the client's stated research target and any employer-conflict list the client provides, checking for current or recent employment at a company that would create a conflict. At scheduling, both the client and the expert sign or click through a compliance attestation confirming the call will not involve MNPI, trade secrets, or information covered by an existing non-disclosure agreement. During the call itself, many networks apply compliance monitoring or require a compliance chaperone on the line for the most sensitive engagements, though practices vary significantly by network and client tier.

How it works

• Pre-call conflict screening: checking the expert's current and recent employers against a client-supplied restricted list before the expert is even proposed as a candidate.
• MNPI attestation: a signed or click-through acknowledgment from both parties that the call will not include material non-public information.
• Information barriers ("Chinese walls"): internal separation within the network between its expert-recruiting function and its client-account function, intended to prevent information leaking between clients.
• Compliance chaperoning: for the highest-risk engagements, a live compliance officer monitors or joins the call to intervene if the conversation strays into restricted territory.
• Post-call recordkeeping: retaining a call log, and in some cases a recording or transcript, so the client's own compliance team can audit the engagement after the fact.

What to verify before you engage

• Named compliance officer or team. Ask the network to name the individual or team responsible for compliance screening, not just point to a generic policy page. A real compliance function has an identifiable owner.
• Restricted-list screening process. Ask exactly how the network checks a candidate expert against your firm's restricted or watch list before proposing them, and how quickly that check happens relative to when the expert is presented to you.
• MNPI attestation language. Request the actual text of the compliance attestation both parties sign or click through, not just a description of the policy.
• Recordkeeping and audit access. Confirm whether call logs, recordings, or attestation records are retained and accessible to your own compliance team on request, since your firm may need them for its own audit trail.
• History of compliance incidents. It is fair to ask a network directly whether it has had any publicly reported compliance or regulatory incidents, and to independently search for news coverage rather than relying solely on the network's own answer.

Questions to ask before you engage

1. Who is the named individual or team responsible for compliance screening at your firm?
2. Walk me through exactly how you screen a candidate expert against our restricted-employer list before proposing them.
3. Can you share the actual text of the MNPI attestation both parties sign?
4. Do you retain call logs or recordings, and can our compliance team access them on request?
5. Has your firm had any publicly reported compliance or regulatory incident in the past five years?

Red flags

• A sales representative who cannot name a specific person or team responsible for compliance, only a general policy statement.
• Refusal to share the actual attestation language experts and clients sign.
• No process for checking a candidate expert against your firm's specific restricted-employer list before they're proposed.
• Pushback or evasiveness when you ask about retained call logs or audit access for your own compliance team.
• Unwillingness to discuss publicly reported compliance incidents when you raise one directly.