| Investment advisery firms face tremendous challenges | | | | basis. This would allow the costs of ongoing system |
| in addressing compliance requirements. For more info | | | | maintenance and upgrades to be spread across the |
| please see | | | | universe of users while implementation costs could be |
| The costs associated with administering an effective | | | | virtually eliminated. Additionally, smaller firms would |
| program. The time needed for issue monitoring. The | | | | have more flexibility in meeting their compliance needs |
| rapidly changing and increasingly complex regulatory | | | | through a "try-to-buy" model. |
| environment. Demands from institutional prospects for | | | | At most small to mid-size firms, employees responsible |
| proof of operational excellence. The need to | | | | for compliance monitoring also have other key |
| demonstrate the effectiveness of programs to | | | | responsibilities that are critical to the firm's core |
| regulators. <!-- end #custom_ans_bg_bl --> <!-- | | | | functions. CFOs and CEOs, for instance, also function |
| end #custom_ans_bg_br --> <!-- end | | | | as chief compliance officer in many smaller |
| #custom_ans_bg_tl --> <!-- end | | | | organizations. Automation allows these valuable |
| #custom_ans_bg_tr --> <!-- end | | | | resources to be redirected to activities that support |
| #custom_ans_bg --> | | | | the firm's main business objectives. |
| Addressing these issues takes time, money and | | | | One thing wealth management firms can be sure of is |
| expertise. Maintaining an effective program can be | | | | that increased regulation of both the public and private |
| difficult for even the largest firms, so how do small and | | | | financial services sectors, whether mandated or |
| mid-sized firms stand a chance when faced with all of | | | | self-imposed, will continue to rise. SEC examinations |
| these issues? | | | | are becoming longer, more detailed and more |
| In the past, many small and mid-sized firms have | | | | comprehensive. As a consequence, the risks |
| looked to technology to provide a solution. | | | | associated with non-compliance are rising exponentially. |
| Unfortunately, comprehensive IT offerings, to this point, | | | | The financial implications as well as the reputational |
| have been cost prohibitive. Traditionally, smaller firms | | | | ones can be daunting for any firm, but for smaller and |
| have appropriately focused their IT expenditure on the | | | | mid-sized firms, they can be devastating. |
| supporting investment process or areas where | | | | In response to this threat, small to mid-sized wealth |
| savings can be achieved in operational or product | | | | management firms are seeking effective, flexible and |
| distribution/customer servicing. Also, because firms of | | | | cost conscious compliance solutions that provide real |
| this size often have few employees and consequently | | | | business value and some insurance against litigation |
| a relatively lower volume of compliance activities, the | | | | and growing fines. An automated, web-based, hosted |
| "systems" they employ have been paper, Excel, | | | | compliance management solution can provide these |
| reminders in Outlook, etc. Smaller firms have not | | | | firms with a affordable access to the expertise and |
| implemented in-house systems because these manual | | | | flexibility needed to respond to this rapidly changing |
| processes have not been sufficiently encumbering to | | | | regulatory environment. Such a solution could allow |
| justify the expenditure, but they can and do leave | | | | customers to avoid substantial upfront capital |
| room for error. | | | | expenditures in technology and other infrastructure |
| A hosted solution over the Web can resolve many of | | | | related to creating and maintaining in-house solutions, |
| these issues for smaller firms. Instead of building costly | | | | freeing up time, resources and money that then can |
| in-house systems, a specific solution can be built that | | | | be redeployed in support of the organizations core |
| meets the needs of the industry on an outsource | | | | functions. |