There’s no room for ‘somewhat compliant’ when it comes to the finance sector, or any industry for that matter. You’re either 100% compliant or not at all. However, as an Independent Financial Adviser, we understand that keeping up with the fast-paced and ever-changing regulatory environment can be not just challenging, but also incredibly complex and time-consuming, posing significant risks
This is why we’re kicking complicated compliance to the curb and looking at how to ensure product compliance in financial advisory services while mitigating risks as an adviser.
Product compliance as an IFA
For larger companies, an entire department is often dedicated to regulatory compliance. However, as an IFA, you are the frontline in maintaining compliance. This crucial task often falls on your shoulders, and it’s your adherence to the external rules and internal controls that are subject to law that ultimately protect investors and ensure fair, efficient, and transparent markets.
They also provide a level of security and risks mitigation for IFAS in terms of system risk, security threats, and reputational damage. Furthermore, product compliance and strict regulatory guidelines can dictate a myriad of business activities, including client communications, conflicts of interest, client understanding and suitability, client dealings, and client assets
How to navigate product compliance as an Independent Financial Adviser
When trying to navigate compliance, the first thing you need to do is understand the landscape and terrain you’re navigating. But as with all things in the compliance world, things aren’t always as straightforward as they appear to be. The crux of the compliance landscape is understanding that it’s not simply about following the rules. Instead, it’s about establishing (and maintaining) a culture of integrity and accountability. To do this successfully, there are a few key things to consider, such as:
- A changing regulatory environment:
When it comes to compliance, complacency is your worst enemy. You may be compliant today, but tomorrow? Different story. Regulations are quick to change due to governmental shifts, making it imperative that you keep a finger on the pulse of legislative shifts.
- Local and international perspectives:
Advisers must be aware of the fact that regulations differ depending on the specific jurisdiction. Both domestic and international regulations could impact their practice.
- Industry specifics:
Ultimately, it’s important to understand that there’s no one-size-fits-all framework when it comes to compliance. Different finance sectors have unique regulations, so understanding your niche is vital.
Undoubtedly, navigating compliance can be a daunting, complex, and time-consuming process. This raises a crucial question – how do IFAs manage to keep up with the plethora of ever-changing regulations that rarely remain consistent?
Navigating compliance requires robust tools and strategies
Managing compliance doesn’t have to be a solitary journey. Especially when you have the right tools to guide you every step of the way. With Commspace, IFAs can alleviate the pressure of juggling numerous manual tasks. Instead, you can rely on real-time data and insights for efficient, error-free, and, most importantly, compliant revenue stream management. Commspace allows you to identify missing commissions and revenue, and forecast and leverage opportunities to the maximum. Moreover, our integrated compliance checkpoints guarantee that your business is always compliant before any issuance.
The ultimate solution for managing, tracking, splitting and analysing Financial Adviser revenue.
Book a demo here.
