Lengthy Compliance Process
Having an inefficient compliance process eats up time, is tedious, and altogether a waste of precious resources. While financial advisors are awaiting approval, they have no choice but to sit and twiddle their thumbs. Thus are unable to deliver content to reach their clients simply because the process is time-consuming.
Through client communications, advertising, blog posts and social media financial advisors may use a number of different channels to produce content. The development of technology over time has sped up a financial advisor’s capability to produce content. Creating a disconnect between compliance departments’ approval time and the high volume of content that can be produced through these channels. To overcome this content approval challenge, a marketing team can try to greenlight a lot for advisors all the time but it takes away from both the advisor’s and the marketer’s valuable time.
As a financial advisor, the question becomes would you dedicate a full day towards compliance issues and content approval? No of course not, you would like to save precious time along with less content-heavy lifting. A financial advisor should not have to worry about working through all compliance issues manually.
Keeping records for 7 years because of regulatory rules for multiple advisors may sound simple, however, it is just the opposite. Having to manually file the following files: notes on all client reviews, discussions, questions, and correspondence, including copies of email communications, and more can bog down advisors and compliance departments. The main communication channels like blogs, websites, and external pages all need to be accounted for. Currently, advisors take screenshots of their webpages to have a record of changes that can be historically accurate if called upon in an audit. Websites and external pages are a difficult thing to capture every time an update is done to them, very time-consuming, tedious, and not to mention the filing.
Imagine in a 7-year timeframe how many pieces of content that are created by an advisor. Now, multiply that by one hundred advisors or one thousand advisors within that 7-year period, things can get pretty messy pretty fast without the right system in place. When an auditor requests documents it’s very stressful trying to retrieve the right information, for the right advisor, and for the right time period. Companies, marketers, compliance officers, and financial advisors all want to get through an audit as painlessly and headache-free as possible. To do that, they need to be able to easily store and retrieve data in a digital format, something that should be done automatically.
The question becomes can your firm produce the documents auditors want at a moment’s notice? If the firm or a financial advisor cannot produce those documents, they could find themselves in hot water. According to an article by Investment Executive, “If you’re not, the consequences can range from a warning to terms and conditions being placed on your registration or being deregistered altogether.” Mistakes are human and we all make them no doubt but these mistakes can get you in trouble with some regulatory bodies.