Published on Aug 18th, 2023 |

Mistakes To Avoid When Choosing A Compliance Partner

Vigilant Insights

Brief Introduction

We’ve previously discussed how a Firm can address its need for a cost-effective compliance solution.

There can be many risks and inefficiencies resulting from “do it yourself” compliance or hiring the wrong compliance partner.

When Firms make the decision to hire a compliance partner, it is important that they avoid easy mistakes that can be very costly.

3 Mistakes to Avoid

3 Mistakes to Avoid

  1. Failing to understand the resources required to be truly compliant.
    • Advisers that use dual-hat CCOs may be surprised by the amount of time required to bring their compliance program up to industry standards.
    • Responsibilities of compliance professionals involve, but are not limited to, supervising employees, filing required documents, testing and assessing policies and procedures, and adjusting to changing SEC rules.
    • Ensure that your compliance partners understand your needs and can clearly define how they will partner with you to reach your goals.
  2. Failing to vet the compliance firm for an understanding of the numerous regulatory requirements for advisers.
    • Proactive compliance requires professionals with many years of experience that understand what the SEC is looking for during examinations, and how Firms can avoid regulatory headaches.
    • Advisers have a plethora of obligations created by laws, regulations, and SEC rulemaking that can be difficult to understand in a practical manner.
    • Be sure that your compliance partner has experienced staff members to provide both deep industry insight and tailored compliance solutions.
  3. Failing to comprehend how adaptable their compliance partner must be in the current regulatory climate.
    • The SEC continues to propose new rules and amendments.
    • With a record number of rules that may be finalized, it is crucial that compliance departments are adaptable to reduce the costs of making changes.
    • Choose a compliance partner that constantly assesses your compliance program for alignment with the newest industry standards.

Vigilant's Conclusion

Vigilant’s Conclusion

Firms can be anxious initially when making the decision to enlist third-party compliance support.

Due to the high cost of compliance failure, there needs to be a strong sense of trust in who you choose as a compliance partner. Avoiding the above common mistakes is a good first step towards building a successful compliance partnership.

Leveraging deep industry experience, Vigilant is prepared to help your Firm reduce regulatory burden, improve efficiency, and focus on the core business objectives within the Compliance program.

To get in direct contact with our Chief Operating Officer and Vice President of Sales and Business Development, click the button below to schedule a call today.

Contact Us Today