Published on Jul 11th, 2023 |

RIAs Understand the Importance of Compliance to Their Success 


Brief Introduction

In a recent article by InvestmentNews, RIAs throughout the industry report on the importance of compliance to their success.

At a time when the regulatory environment is incredibly aggressive, and regulators are making record-breaking numbers of rule proposals and amendments, the industry is investing heavily in compliance to avoid major financial burden.

Throughout the article, certain themes were consistent among the RIAs providing commentary.

RIAs Understand the Importance of Compliance to Their Success 

Recognizing the Importance of Compliance

  1. Although compliance is not revenue-generating, most RIAs understood how damaging compliance failures are to one’s revenue
  2. Successful compliance requires resources, and many Firms reported their need for personnel dedicated to compliance
  3. RIAs are beginning to integrate their compliance success into advertising efforts, as some have noticed clients inquiring about how the Firm is proactive in protecting their interest

RIAs Understand the Importance of Compliance to Their Success

The Need for Guidance from Experienced Professionals

  1. Multiple RIAs in the article reference their need for guidance when trying to navigate the regulatory environment
  2. Chief Compliance Officers (“CCOs”) of Firms reported how it’s complex to do all the required work themselves, with many needing experts to help guide their Firm in tailoring policies and procedures to their business model
  3. The idea of “just doing the right thing”, a form of “on-the-fly” compliance, is not even a possibility in the current regulatory climate

RIAs Understand the Importance of Compliance to Their Success

Use of Third Parties for Compliance Support

  1. Even the Firms with very experienced CCOs reported reaching out to compliance professionals for some level of support.
  2. Consulting Firms are an expected part of business now, when small and medium Firms are trying to build their client base and avoid the errors that come with do it yourself compliance.
  3. As smaller Firms grow into larger Firms, many RIAs consider outsourcing their CCO if they prefer to focus solely on growing their business.

RIAs Understand the Importance of Compliance to Their Success

Types of Firms Vigilant Provides CCO Services for

Ranging from Start Up Firms/Fund Launches to $30 Billion+, Vigilant currently provides the following types of Firms listed below with Outsourced Compliance Services.

  1. Private Equity Funds and Advisers
  2. Hedge Funds and Advisers
  3. Real Estate Funds and Advisers
  4. Mutual Funds and Advisers
  5. ETFs and ETF Advisers
  6. Closed End Funds and Advisers
  7. Venture Capital Funds and Advisers
  8. BDCs
  9. SMAs (Individual/High Net Worth Individual Firms)
  10. Broker Dealers

RIAs Understand the Importance of Compliance to Their Success

Vigilant’s Conclusion

The commentary in the article provides some insight into the data that has shown a large increase in compliance expenditures over the past few years.

Advisers are seeing the necessity of trained and experienced compliance professionals that are willing to work with them as business partners.

When making the right choice to outsource or co-source your Compliance, it is vital that you choose the proper Firm.

Vigilant is committed to your business and its goals. We act as a partner in your business, with your success as our highest priority.

Every Firm has different compliance needs, and we work with our clients to find out what level of support they require. Our services extend across a varied spectrum, and are tailored to your needs.

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

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