How technology can help advisers manage a new compliance landscape

A technology audit can help ensure your firm is taking the necessary steps to meet new and changing compliance requirements.
SEP 07, 2017
By  Bloomberg

In a post-fiduciary world, the difference between adequate and robust compliance processes will make or break your firm's ability to stay on top of new rules, including the Department of Labor's fiduciary rule and revised ADV disclosure requirements. Advisers today are faced with a daily laundry-list of demands on their time, and it can be increasingly difficult to perform the tasks that are crucial to compliance, from gathering ever-increasing amounts of data about your investment process and social media to disclosure delivery. Institutional memory isn't enough. Luckily, there is technology available to automate many of these processes and save advisers' most valuable resource: time. Yet it can be hard to find an off-the-shelf product to meet all business requirements, while also providing risk protection and the customizability needed to tailor it for your firm. (More: Industry veterans form tech integrator for advisers) By completing a technology audit, you can ensure your firm is taking the necessary steps to meet new and changing compliance requirements. Plus, taking an honest look at where your firm stands will shine a light on potential gaps before they become too large to handle. We recommend three steps in your firm's audit: 1. Start by examining your current technology systems and considering whether they have the adequate foundation and tools needed to track information and provide disclosures. If your current technology is out of date, it's likely time to invest in an upgrade in order to better meet your current and future needs. Having an up-to-date, cloud-based product in place that provides capabilities beyond the basics will make it easier to ensure your firm remains compliant, while day-to-day operations run smoothly. (More: Custodians are charting fintech's future) 2. Next, seek opportunities to standardize common processes such as your sales approach, onboarding new clients, opening new accounts and conducting compliance reviews. By using systems to automate work and drive next steps, you'll more easily build a team focused on developing new business and serving clients — areas that drive growth. 3. Lastly, anticipate changing future needs. Regulatory rules are a moving target and no one can predict how they'll shift, so having flexible technology in place will play a significant role in firms' ability to adjust to any and all rule changes. While each of these steps is vital in providing seamless and accurate client reporting, the efforts are wasted if your firm doesn't have dedicated personnel who understands how to operate and implement the processes outlined above. Having the right people in place, with executive support behind them, is key to successfully adapting in today's industry environment. You won't get value from technology just by writing a check. (More: The DOL fiduciary rule practically necessitates account aggregation) In this constantly changing environment, we know compliance is generally well-meaning, and the increased scrutiny imposed by new rules offers advisers the opportunity to identify any roadblocks on the technology front that need to be addressed. A technology audit, backed by the right people in a firm, can ensure you are adaptable regardless of the compliance environment. Sayer Martin is chief operations officer and co-chief technology officer at Orchestrate.

Latest News

Northern Trust names new West Region president for wealth
Northern Trust names new West Region president for wealth

The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.

Capital Group extends retirement plan services further with a focus on advisors
Capital Group extends retirement plan services further with a focus on advisors

The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.

Why RIAs are the next growth frontier for annuities
Why RIAs are the next growth frontier for annuities

David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.

Supreme Court slaps down challenge to IRS summons for Coinbase user data
Supreme Court slaps down challenge to IRS summons for Coinbase user data

Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."

Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director
Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director

Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.