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How to Build a Robust Compliance Culture at Your Advisory Firm

Financial Advisory Firm Compliance Culture

As a compliance officer, you play a crucial role in safeguarding your firm against regulatory risks. Building a robust compliance culture is essential not only for regulatory adherence but also for maintaining the trust of your clients and stakeholders. To help you with this vital mission, here are valuable pointers on establishing a strong compliance culture within your financial advisory firm.

Compliance Culture Advisory Firms

  1. Establish Clear Policies and Procedures

A strong compliance culture starts with well-defined policies and procedures that align with regulatory requirements. Ensure that these guidelines are accessible and clearly communicated to all employees. Remember to review and update your policies regularly to include any changes in the regulatory environment.

  1. Promote Proactive Email Monitoring

Email communication is a significant area of risk for financial advisors. Implementing proactive email monitoring software, such as Presults, can help identify and mitigate potential compliance breaches. Presults automatically scans and flags emails that contain non-compliant keywords before they get sent to the client.

archiving technology for financial advisors

  1. Regular Reviews of Client Communication

Conduct regular reviews of client communications to ensure adherence to regulatory requirements. With vast amounts of communications to review and consistently changing regulations, it’s recommended to invest in technology to aid in internal reviews. For example, Presults can reduce the manual time spent on email reviews by 90%.

  1. Foster a Culture of Accountability

Compliance is the responsibility of everyone. Achieving this involves keeping employees informed about the latest regulatory updates and best practices, and providing them with both human and technological support. Presults educate advisors about compliance by informing them when words or key terms they want to use are non-compliant. 

Modern compliance technology advisory firms

  1. Leverage Modern Technology for Compliance Management

When it comes to building a strong compliance culture at your advisory firm, it’s important to invest in modern technology solutions that can streamline compliance management processes. Just as you keep your website up-to-date, you should also ensure that your compliance software is modern and equipped with the latest technological advancements, such as automation and AI.

It’s essential to evaluate your compliance tools to make sure they are up-to-date with the ever-changing digital communication platforms that clients expect.

Ready to Enhance Your Compliance Culture?

Building a robust compliance culture is an ongoing journey that requires commitment and the right resources. At Presults, we offer comprehensive solutions designed to support your compliance efforts. Schedule a demo with our experts today to learn how we can help you achieve a robust compliance culture.

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Why Financial Advisory Firms Should Empower Advisors with Platform Choice

Advisor Communication Platforms

In the digital age,  the options for advisor communication platforms have expanded exponentially, offering financial advisors an array of platforms to connect with clients and prospects. From traditional emails to social media giants like LinkedIn, and even instant messaging apps like WhatsApp, the landscape is rich with possibilities. However, despite the benefits these platforms offer, many financial advisory firms impose restrictions on their use, fearing compliance issues and data security concerns.

But what if I told you that allowing advisors to use the platforms they prefer not only enhances communication but can also remain compliant? Let’s jump into why financial advisory firms should embrace platform choice and empower advisor communication.

Advisor Mobile Communication Platforms

Enhancing Client Engagement

First and foremost, providing advisors with the freedom to choose their preferred communication platforms fosters stronger client relationships. Clients have their own preferences when it comes to communication, and by accommodating these preferences, advisors can better connect with them.

For instance, while some clients may prefer formal emails for discussing financial matters, others, such as next-generation clients, might find it more convenient and engaging to communicate via text message. By allowing advisors to use communication platforms where clients feel comfortable and are most likely to respond, ultimately leads to better client-advisor relationships.

Expanding Reach Through Social Media

Social media platforms like LinkedIn offer more than just communication—they provide a space for advisors to showcase their expertise and expand their reach. By sharing valuable content and engaging with industry peers and potential clients, advisors can bolster their online presence and attract new business opportunities.

However, many firms shy away from social media due to compliance concerns. Enter archiving tools like Presults. These solutions enable firms to archive communication across various platforms, ensuring compliance with regulatory requirements. With archiving in place, advisors can confidently leverage social media to amplify their voice without compromising compliance.

Advisor Communication Platforms

Real-Time Communication with Instant Messaging

In today’s fast-paced world, instant messaging has become a preferred mode of communication for many. Platforms like WhatsApp and text messaging offer immediacy and convenience, allowing advisors to address client inquiries promptly and efficiently.

It may also be important for advisors to not have to pick just one of these platforms, especially if they have clients from different generations. Older generations may prefer text messaging while younger generations may be more active on Whatsapp. While some firms may hesitate to embrace messaging platforms due to compliance worries, modern archiving tools like Presults alleviate these concerns.

Empowering Advisors with Choice

In a competitive industry like financial advising, offering a choice of digital platforms can be a strategic differentiator. Consider the scenario where an advisor’s client base is particularly active on LinkedIn. To effectively engage with and retain these clients, the advisor must have a robust LinkedIn strategy in place. However, if advisors are deprived of the autonomy to select their preferred digital platforms, they find themselves at a significant disadvantage. In such a scenario, where competitors are leveraging tailored digital solutions, advisors risk losing out on valuable prospects and even existing clients.

The ability to choose digital platforms equips advisors with the tools necessary to adapt and thrive in an environment where client preferences and industry trends evolve rapidly. It enables them to align their strategies with client demographics, stay ahead of the competition, and ultimately, solidify their position as trusted financial partners.

Conclusion

In an era defined by digital connectivity, financial advisory firms must adapt to the continuously evolving landscape of communication platforms or risk getting left behind. By embracing a variety of digital platforms and empowering advisors with choice, firms can enhance client engagement, expand their reach through social media, and facilitate better communication with prospects and clients. 

Moreover, with archiving solutions like Presults, compliance concerns no longer need to hinder the adoption of new communication channels. Instead, firms can leverage Presults to ensure regulatory compliance while allowing advisors the freedom to use the platforms that best suit their and their client’s needs.

Want to learn more about how Presults can enhance compliance for your advisors communication platforms? Book a demo today.  

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How to Tap Into the Next Generation as a Financial Advisor

Next generation of clients for financial advisors

Want to tap into the next generation of clients? As a financial advisor, adapting and evolving is critical to stay current and to future-proof your business. With millennials and Generation Z becoming a dominant force in the market, it’s essential for advisors to cater to their preferences and needs. As we look to the future, here are some key strategies for tapping into the next generation of clients. 

Embrace Technological Advancements

It’s no secret that younger generations are proficient with technology. Having grown up in the digital era, they effortlessly navigate online platforms and mobile apps. To forge a connection with these tech-savvy individuals, financial advisors must also harness technological advancements.

 

One way to use technology to your advantage is through the use of social media and apps to reach the next generation. Establish a presence on platforms such as TikTok, Instagram and LinkedIn to build credibility and expand your reach. Sharing content on these platforms will allow you to personify your expertise, fostering trust, credibility, and authenticity.

 

You’ll also want to offer tech-based solutions with user-friendly interfaces. An easy-to-use client portal may be a value add for older generations, but younger generations consider it a given. 

Social Media Communication next generation

Communicate with them in Their Way

When it comes to technology, the one thing that it has completely transformed is the way people communicate with each other. Make sure to ask clients about their preferred means of communication – and be open minded to it. Afterall, it’s in your best interest to communicate with the younger generation on platforms that they are constantly checking, like Whatsapp. Younger generations are often more comfortable with digital forms of communication and may prefer this to in-person meetings to foster relationship buiding. When possible, consider sending quick check-ins and updates through text or Whatsapp messages, over long-form email communication. Being flexible with your communication can help better serve younger clients. 

 

Whichever form of digital communication you choose, make sure that you have the proper technology to proactively archive your client communication for compliance purposes. Presults is provides financial advisors with automated archiving across text messaging, Whatsapp, LinkedIn private messages and more to make it seamless to communicate with the next generation of advisors. 

Focus on Financial Education and Transparency

The next generation has grown up with endless resources and amounts of information at their fingertips and often approaches authority with more skepticism. Capitalize on their inclination for research by offering educational content spanning spending plans, debt management, investing, home ownership, and more. Consistently share insights and practical advice to aid their financial journey.

 

Transparency with any client is important, but with younger clients, you’ll want to be extra clear about your fee structure and the services you provide. Younger clients are more likely to engage and stay with advisors if they demonstrate transparency in their practices. 

Socially responsible investing

Cater to Sustainable Investing and Social Responsibility

Sustainable investing resonates deeply with Millennials and Gen Z. They seek investment opportunities that align with their values and are more inclined to work with advisors who prioritize sustainable investing. About one-third of millennials often or exclusively use investments that take ESG factors into account.

 

To target this demographic, integrate environmental, social, and governance (ESG) factors into your investment strategies. Beyond offering these investment opportunities, highlight the positive impact these investments have on society and the environment. Showcase your commitment to impact investing to attract clients who align with these values.

Teach the Importance of Debt Management

The next generation, even those with higher incomes, face the challenge of managing debt. With student loans, auto loans, credit cards, and mortgages, the average millennial now has six figures worth of debt. There is no denying that a proper debt management strategy is a vital part of their financial journey. 

 

Due to debt and their age, younger clients may have reduced net worth, but this doesn’t mean they’re not a good long-term client. A young doctor may have substantial student loans, but initiating a relationship with them now can result in a strong relationship with a high-net-worth client down the road. As a result, they may refer additional clients from their network to you too.

The Takeaway 

To tap into the next generation of clients, financial advisors must adapt their practices to align with the preferences and needs of millennials and Gen Z. By embracing new technology, communicating with them on their preferred communication channels, prioritizing financial education, and practicing sustainable investing advisors can position themselves as trusted partners for the younger demographic. Implementing these strategies allows financial advisors to build lasting relationships and secure a prosperous future with the next generation of clients.

 

Presults™ offers a new standard in compliance that is easier to manage, reduces cost, and is highly-effective.

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