6 Compliance Moves to Make in 2013
November 9, 2012 11:28 AM
6 Compliance Moves to Make in 2013
Compliance is an issue every advisory firm has to deal with, but is your firm adequately prepared to execute effective compliance strategies?
Jennifer Woods Burke, President of CompliGuide, a compliance consulting firm, offers her thoughts on the 6 Compliance Moves Financial Firms should make in 2013.
Jennifer Woods Burke, President of CompliGuide, a compliance consulting firm, offers her thoughts on the 6 Compliance Moves Financial Firms should make in 2013.
1. Conduct an Annual Check-Up
While it is standard practice to keep your books in order, firms should remember to conduct the same due diligence to their service providers. If the regulators have a problem with one of your vendors that problem may be quickly revisited on you. Conducting an annual vendor checkup can ensure that your firm is spending its limited compliance budget wisely.
2. Empty Chair Solutions
As workforce reduces on Wall Street, advisory firms are increasingly pressed to think out of the box for solutions. Some include having a professional secretary answer your calls on the cheap. Likewise, a compliance shop membership is a cost effective way to gain access to necessary and workable compliance templates for your firm.
3. Recognize Loopholes
Every firms compliance program has loopholes that may be exploited. Look for these gaps and test the quality of your compliance goods regularly.
4. Automate
As more and more vendors enter the arena, products are improving and prices are dropping. Automation has become so inexpensive that even the smallest advisory firms can find a vendor solution to meet its budget.
5. Break into Social Media
A lot of advisory firms are reluctant to embrace social media in fear of instigating compliance missteps. However, pushing away social media can cost the firm business opportunities, as more and more clients and recruiters use it.
6. Think Like a Criminal
Fraud is easily and often committed, and your best way to evade it is to know it. You are not going to know who is stealing your money, selling away from the firm or peddling your clients information unless you think like a fraudster (or employ someone that can).
