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.

True West Consulting Partners with Presults to Enhance Compliance for Financial Advisory Firms

True West Consulting and Presults Partnership

[New York, NY, March 22, 2024] – Presults, a cutting-edge communication archiving solution designed specifically for the modern financial advisor, is proud to announce a strategic partnership with True West Consulting, a leading provider of compliance solutions for SEC registered investment advisory firms. This partnership aims to bolster their shared commitment to helping financial advisory firms navigate regulatory requirements effectively while streamlining compliance processes.

As financial regulations continue to evolve and become increasingly complex, financial firms are faced with the challenge of ensuring compliance while maintaining a focus on client service. True West Consulting specializes in assisting firms in creating a strong culture of compliance, offering tailored solutions to meet the unique needs of each client. Companies receive assistance in establishing robust compliance programs, including integrating the right compliance technology such as Presults.

Presults’ empowers financial advisors to focus on their clients without the burden of compliance worries. Their communication archiving solution is meticulously crafted to align with the specific laws and regulations set by the SEC and FINRA, providing financial firms with peace of mind knowing that their communication records are compliant and secure. Presults’ commitment to staying at the forefront of technology and regulatory changes ensures that financial advisors are equipped with modern automation tools to future-proof their practices.

Through this partnership, True West Consulting will leverage Presults’ state-of-the-art technology to enhance its compliance solutions for financial firms. By utilizing Presults’ communication archiving solution, True West Consulting will help its clients automate client communication archiving for compliance, mitigate risks, and protect their clients’ best interests more effectively.

Furthermore, as part of this partnership, True West Consulting clients will receive an exclusive discount on Presults software, adding value to firms seeking comprehensive compliance solutions.

“We are excited to partner with Presults to further enhance our compliance offerings for financial firms,” said Kari Thiessen, Co-Founder of True West Consulting. “By leveraging Presults’, we can provide our clients with even greater support in meeting regulatory requirements and ensure they utilize intuitive and modern archiving tools”.

True West Consulting and Presults are committed to supporting financial firms in their compliance efforts and helping them thrive in an ever-changing regulatory landscape.

For more information about True West Consulting and Presults, please visit True West Consulting’s website and Presults’ website.

The Benefits of Taking Proactive Compliance Measures

Proactive compliance Advisory Firm

Financial advisory firms often fall into the trap of reactive archiving, waiting until after non-compliant issues surface before addressing them. This approach not only increases stress levels but also exposes the firm to compliance headaches and potential regulatory penalties. 

Proactive compliance at financial advisory firms, on the other hand, entails automating digital communication archiving and implementing real-time email monitoring to scan communications for non-compliant keywords or terms actively. By staying ahead of the curve, firms can identify and rectify potential compliance issues before they escalate into more significant problems. Not convinced? Here are a few reasons why not taking proactive compliance measures will cost you: 


Early Detection of Compliance Risks

Proactive archiving allows firms to identify compliance risks in real-time, enabling them to intervene promptly and mitigate potential violations before they occur. By continuously monitoring communications, including emails, instant messages, and other forms of correspondence, firms can detect problematic language or behavior early on.

Presults can reduce the need for email compliance reviews by 90%. Presults also uses AI monitoring for non-compliant keywords or terms in real-time. By proactively monitoring client communications, firms can detect problematic language or behavior early on.

Proactive compliance Advisory Firm

Timely Intervention and Correction

With real-time monitoring in place, financial advisory firms can intervene promptly when non-compliant communication is detected. Whether it’s a client email containing sensitive information or an employee discussing prohibited topics, immediate action can be taken to address the issue, correct any misunderstandings, and prevent further compliance breaches.

An even better approach is to use technology, such as Presults, to monitor emails in real-time so that, employees can be notified about non-compliant terms before the email is even sent to the client. This helps to educate them on the reason for the non-compliance, thus mitigating the need for further intervention.

Enhanced Compliance Culture

By prioritizing proactive archiving, firms foster a culture of compliance where all team members are vigilant about adhering to regulatory requirements. When employees know that their communications are being monitored in real-time, they are more likely to exercise caution and ensure that their interactions comply with company policies and industry regulations. Additionally, monitoring solutions such as Presults,  educate employees on why an email communication did not meet compliance standards, resulting in a more educated and compliant workforce. 

Reduced Regulatory Exposure

By identifying and addressing compliance issues proactively, financial advisory firms can significantly reduce their regulatory exposure and mitigate the risk of fines, penalties, or legal action. By demonstrating a commitment to compliance through proactive monitoring and intervention, firms can enhance their reputation and build trust with clients and regulatory authorities.


Proactive compliance for your financial Advisory Firm

Operational Efficiency and Peace of Mind

Proactive archiving is a more efficient approach to compliance efforts as it reduces the administrative burden that comes with reactive approaches. Companies can take it a step further by automating the monitoring compliance measures and utilizing advanced analytics tools to prioritize value-added activities. This not only saves resources but also provides peace of mind.

Final Thoughts on Proactive Compliance

In summary, proactive archiving is essential for financial advisory firms that wish to stay ahead of regulatory requirements, mitigate compliance risks, and maintain their reputation for integrity and trustworthiness. By adopting proactive compliance processes and solutions, firms can foster a culture of compliance, reduce regulatory exposure, and ensure smoother operations and peace of mind.

Avoid These 5 Common Archiving Mistakes to Ensure Compliance in your Financial Advisory Firm 

Archiving compliance mistake

Effective archiving is a cornerstone of compliance for financial advisory firms. Yet, many stumble into common archiving pitfalls that hinder compliance, reduce efficiency, and jeopardize client trust. In this article, we’ll delve into the five most prevalent archiving mistakes financial advisory firms make and how to avoid them.


Mistake #1: Thinking it’s one person’s responsibility

Archiving is often seen as a task assigned to one individual or department. However, it’s a collective responsibility that requires coordination across the organization to ensure that all team members are taking a responsible and proactive approach to compliance.

To ensure that archiving and compliance are seen as the responsibility of everyone, education is key.  While educating employees on archiving best practices may seem like another task you just don’t have time for, you can leverage AI to proactively monitor team members’ communication with clients to proactively notify and educate them on non-compliant communication. 

Manual financial advisory firm archiving
Manual archiving is inefficient and prohibits growth.

Mistake #2: Archiving everything manually in your financial advisory firm

Manual archiving of everything is inefficient, it leaves your advisory firm prone to errors and increases the risk of oversight and non-compliance. Compliance is not an area where you can afford to make mistakes. Financial advisory firms must embrace automated compliance solutions to minimize compliance risks. In addition, automation streamlines the archiving process and empowers teams to focus on high-value tasks to drive business growth.


Mistake #3: Not being proactive with archiving

Financial advisory firms often fall into the trap of being reactive instead of proactive by waiting until after non-compliant communication surfaces before addressing the issue. This approach not only increases stress levels but also exposes the firm to compliance headaches and potential regulatory penalties. 

Proactive archiving solutions, on the other hand, implement real-time email monitoring systems that actively scan communications for non-compliant keywords or terms. By staying ahead of the curve, firms can identify and rectify potential compliance issues before they escalate into more significant problems, ensuring smoother operations and peace of mind.

Archiving data ready for audits financial advisory firm

Mistake #4: Not having data easily accessible for audits

When auditors come knocking, quick and easy access to archived data is paramount. Fumbling through disorganized files or outdated systems can delay audits and raise red flags. Financial advisory firms are often required to provide comprehensive documentation and evidence of their compliance efforts during audits, such as archived communications and other relevant data. Without efficient archiving systems in place, firms may struggle to locate and retrieve the necessary information, wasting valuable time and resources and increasing audit times. 

To avoid these pitfalls, financial advisory firms must prioritize the accessibility and organization of their archived data. This involves implementing robust archiving solutions that offer centralized storage, advanced search capabilities, and user-friendly interfaces. By consolidating archived data in a secure and easily accessible repository, firms can streamline the audit process and maintain regulatory compliance. 


Modern archiving solution for financial advisory firms

Mistake #5: Using outdated archiving technology in your financial advisory firm

Legacy archiving solutions may struggle to keep pace with evolving regulatory requirements and technological advancements. Investing in modern archiving technology is not just about compliance; it’s about enhancing security, scalability, and efficiency. By leveraging cutting-edge archiving solutions, financial advisory firms can future-proof their compliance efforts and adapt to changing regulatory landscapes with ease.

Modern archiving solutions provide scalability to accommodate the growing volume of digital communications and data generated by financial advisory firms. As the industry evolves and client demands shift, scalable archiving solutions allow firms to adapt seamlessly without compromising performance or compliance standards. Ultimately, investing in a modern archiving solution goes beyond mere compliance—it’s a strategic decision to fortify the firm’s infrastructure, optimize operational efficiency, and enhance client trust.

Final Thoughts

In the fast-paced world of financial advisory services, avoiding common archiving mistakes is critical to ensure compliance, streamline the audit process, improve your firm’s efficiency, and maintain client trust. By avoiding these five common archiving mistakes and embracing modern solutions, financial advisory firms can navigate regulatory complexities with confidence, safeguarding their reputation and fostering long-term success.