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Compliance, a topic that often triggers anxiety, is of utmost importance in the financial advisory sector. While you may not be directly exposed to non-compliance risk, the complex nature of the subject, including the implications of AI, can leave any business owner feeling uneasy. The digital shift has only amplified the uncertainty around compliance, making it a crucial area to navigate.

So, how can financial advisers ensure that they’re staying compliant within a rapidly changing tech and AI environment? Here’s our take!

Leverage AI to your advantage

When used correctly and responsibly, emerging tech and AI can actually enhance your compliance status. As manual, resource-intensive processes become obsolete, the associated risks are also diminishing. No longer do teams have to grapple with the fear of human error and a lack of real-time insights into their compliance processes. The advent of technology has made compliance less daunting than it used to be.

Modern-day technology, such as automation software and AI learning tools, can not only help reduce the risk of non-compliance but also provide advisers with a tool to automate and monitor compliance tasks to ensure consistent compliance within a changing regulatory environment and tech landscape. This includes tasks such as monitoring transactions, communications, and activities to quickly identify and flag potential issues, reducing the risk of human error and helps advisors stay ahead of regulatory changes.

Choosing the right tool

Despite the advantages that modern technology can provide in terms of compliance, the rapid evolution of digital tools could potentially also do more harm than good. Why? Well, as with all things in a saturated market, not all software is created equal, which is why it’s essential to keep the following capabilities in mind when deciding whether or not to implement a new tool into your business operations: 

  • Consider their information security standard

Compliance is a two-way street. To be compliant, you need to have a firm understanding of the security culture within all third-party vendors that have access to or store your data. Are they certified in a reputable security framework such as ISO 27001, or do they meet leading security standards? This is not just a box to tick, it’s a crucial step to ensure you don’t expose your own business to third-party compliance risk, and to give you peace of mind. 

  • Onboarding and user-friendliness

Did you know that 72% of financial advisers believe it’s essential to integrate artificial intelligence (AI) into their processes? However, almost all (95%) feel unprepared due to a lack of required skills within their businesses. Fortunately, the right tool can bridge this gap. It should be easy to onboard, implement, and use, regardless of your company size, needs, or tech proficiency. When considering an automation tool, ensure it provides support from the get-go and instils confidence within the organisation regarding each individual’s roles and responsibilities and how that impacts overall company performance and compliance. 

Beautiful account management and compliance with Commspace

You don’t need an entire arsenal of tools; you just need one consolidated platform! At Commspace, we capture and collate all your commission and fee statements into one platform, generating insightful, powerful, yet easy-to-understand analytics. And although we prioritise efficiency and accuracy, that doesn’t mean it comes at the expense of security and compliance. 

All our features consider the late regulatory requirements, ensuring access control through role-based access control allowing read/write access to specific functions, complete audit trails which are maintained of all record-modifying actions, multiple layers of physical, biometric, and software-based security protocols and encryption, and more.

Simple. Easy. Accurate 

Book a demo today!