Your Compliance Score - How Do You Add Up?

In the financial services industry, staying on top of compliance is more than just a regulatory obligation. Compliance is essential to your reputation, safeguards against costly fines, and ensures that you can operate with confidence. But with regulations like NI31-103 constantly evolving, how confident are you in your firm's compliance standing?

Think of this like a personal health check-up for your firm. We all know we should eat well and exercise, but it’s the numbers on the scale and the results of a blood test that truly tell us where we stand. This quick quiz is your firm’s compliance check-up. Tally up your answers and see how you measure up!

Question 1: The Ongoing Relationship

A client’s suitability and KYC (Know Your Client) information isn’t a one-time thing. It’s an ongoing responsibility. How do you track and manage changes over time?

A. We have a system that automatically flags when a client's KYC needs an update (e.g., an ID is expiring, or a life event has occurred).

B. We rely on our advisors to manually check in with clients and update records periodically.

C. We typically only update client information when a new trade is being made.

Question 2: Information Management

When it’s time for an annual compliance review or an audit, how quickly can you access all the necessary information?

A. All our client, trade, and compliance data is in one central, accessible platform, ready for review at a moment's notice.

B. We have the information, but it's scattered across multiple systems, spreadsheets, and file folders. It takes a significant amount of time to pull it all together.

C. It’s a scramble every time. We hope we have everything we need, but we’re never entirely sure.

Question 3: Security & Access Control‍

Employee turnover is a fact of business. How do you ensure that when an employee joins or leaves, their access to sensitive client data is managed securely and tracked effectively?

A. We have a robust system that grants and revokes access to information immediately upon hiring or off-boarding. We can track who accessed what, and when.

B. We have a manual process for managing access, which can sometimes be delayed.

C. We rely on IT and hope they get to it in a timely manner.

Question 4: Tracking Conflicts of Interest‍

Conflicts of interest, whether real or perceived, can pose a significant risk to your firm. How do you manage and track these potential conflicts?

A. We have a dedicated system that helps us document and manage conflicts of interest as they arise.

B. We rely on a manual register and trust our advisors to self-report any conflicts.

C. We don’t have a formal system for tracking conflicts of interest.

Your Score:

• Mostly A’s:  You're in a great position! Your firm has invested in the right tools to proactively manage compliance, significantly mitigating the risk of fines and reputational damage.
• Mostly B’s:  There’s room for improvement. Your current processes may be functional, but they likely create inefficiencies and could expose your firm to unnecessary risk. Automation and centralization could be the key to a stronger compliance program.
• Mostly C’s: It's time to act. Your firm is likely operating with significant blind spots, and manual, ad-hoc processes are leaving you vulnerable to potential regulatory action and reputational harm.

Regardless of your score, compliance is a continuous commitment. The good news? In today’s landscape, you don’t have to go it alone. The right technology can transform compliance from a burden into a competitive advantage.

Want to see how Raisr can help you achieve a perfect compliance score? Our software is built to handle the complexities of NI31-103 and beyond, providing a centralized, secure platform to manage your firm's compliance needs.

Book a demo today to learn how Raisr can empower your firm to stay ahead of the curve.

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