Investment advisors start their own firms for a number of reasons, whether it’s a fascination with finance, the desire to help families reach their investment goals, or a strange and unspoken love of federal mandates.
As a registered investment advisor, it’s only a matter of time until you get audited. Audits by SEC or state regulators can happen for cause or at random. It’s not a matter of “if,” but a matter of “when,” so you need every tool at your disposal to ensure you’re prepared – that includes your RIA compliance software.
When it comes to your RIA firm, we know you’re concerned with the bottom line. You may not have the time or budget to invest in novel solutions just because they’re convenient. The tools you use, like your compliance software, need to show real-world benefit before you make them part of your processes.
“Time is money.”
It’s a common saying, and anyone who doesn’t believe probably hasn't tried to run a business. As a professional investment advisor and possibly the principal of an RIA firm, your time and your employees’ time can earn or cost you money, and it’s vital for you to find the balance between the two if you want to be successful.
Are you and your staff at the forefront of RIA compliance training, or could your tools and processes use an upgrade? Even when you think you’ve got everything covered in the event of an audit, there’s always room for improvement. Particularly when it comes to the tricky world of compliance for RIA firms, there’s no time like the present to work training into your schedule for the year.
When the new administration took office, members of the wealth management industry assumed that it would result in the loosening of federal and state regulations, and the decrease of SEC RIA oversight.
That, however, is incorrect. At least so far.
The internet provides a huge and growing frontier for criminals, and your firm is always at risk for an attack. Lax protocols, lack of knowledge, and poor data and network management can make any company susceptible. Without the proper protections, unscrupulous people can easily steal information to use, sell, or ransom back to you at an exorbitant rate.
In the weeks since the new administration has taken office, the news cycle has been filled with talk about executive orders and memos, controversy and, most of all, uncertainty. Many industries have already been affected. You may be wondering what this means for RIAs and how a Donald Trump DOL Fiduciary Rule might affect your firm.
When starting an RIA, one of your surest paths to success is to understand compliance. Familiarizing yourself with the ins-and-outs of SEC and state RIA compliance will help to establish your business as a knowledgeable and conscientious partner in wealth management. And it has the further benefit of placing you in a better position for firm-wide preparedness when you undergo an audit.
Navigating the world of RIA compliance can feel time-consuming at best and stress-inducing at worst. Compliance isn’t always an easy task, but keeping up with DOL, SEC, and state mandates is a necessary step in ensuring the success of your business.
Topics: Compliance Errors