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
- 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.
- 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.
- 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.
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.
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