By now, you know that staying on top of compliance matters is an important but hefty endeavor. Regulatory requirements from the SEC, FINRA and the states in which you do business means you must observe laws and rules to protect client data, maintain credibility, and avoid penalties related to noncompliance. However, handling compliance manually can often feel like a tall order and leaves you prone to errors.
There’s a better way to do things and it starts with technology. Compliance automation has prompted a shift in how financial professionals approach fulfilling regulatory requirements. It calls for using technology to bring efficiency to compliance processes. We break down what compliance automation entails and how it can benefit financial planners and their firms.
Automation Saves the Day
Compliance automation is an area of technology that refers to using digital tools to manage, monitor, and enforce compliance with regulatory standards. By doing so, you’re no longer burdened by the repetitive tasks traditionally performed manually. When your team is less distracted by busy work, they can perform more accurate work and connect deeper with clients.
Automation platforms are great for use cases like documentation tracking, audit preparations, transaction monitoring, and alerts for regulatory changes. These systems are easy to adopt in that adding them to your workflow is relatively seamless. They can work within the context of existing business tools to boost compliance management, simplify processes, and capture compliance status.
The bottom line is that compliance automation is a smart way to modernize your practice and enjoy a lower risk profile.
6 Reasons to Leverage Compliance Automation
Here’s what you can expect from any leading compliance automation platform:
1. Real-Time Monitoring
You need to have real-time data at your fingertips so you can have the peace of mind knowing you’re staying on top of regulations. These solutions track communication activity and transaction details and make you aware of potential issues before they come to a head.
2. Automated Documentation
Tracking documents manually is necessary but also burdensome. On the upside, automation tools can fill in the gaps by generating, organizing, and storing go-to compliance documents in a centralized digital hub. No more lost time searching for a document that feels like a needle in the proverbial haystack.
3. Regulatory Alerts
Compliance automation platforms make you aware of rule changes relevant to your practice as they come online. Some tools even give situation-specific guidance, so you don’t have to make decisions in the dark.
4. Audit Trail Creation
Automated tools produce detailed audit trails, so you’re ready if and when you need to demonstrate compliance. This can reduce the tension associated with audits and enhance your overall compliance strategy.
5. Risk Assessment & Reporting
Automated platforms allow you to analyze your processes for potential gaps so you can take proactive measures to remediate any threats. Built-in custom reporting features are ideal when you need to communicate meaningful compliance metrics to stakeholders or senior leadership.
6. Training & Policy Enforcement
Compliance automation isn’t just for client-centric work. The scope can extend to activities like distributing training materials, tracking employee continuing education credits, and issuing reminders for critical compliance tasks. This way, your team can be sure they’re meeting and maintaining standards of professionalism and compliance.
See Compliance Automation in Action
Compliance automation is no longer an option for financial advisors and wealth management firms today. It’s a must for professionals seeking to maintain trust, minimize risk, and gain competitive footing. When vetting any compliance solution, be sure it’s intuitive, integrates with your current technology stack, and allows you to configure to your business needs.
When it comes to having the best tool in your pocket for all kinds of automation, Docupace is the clear winner. With dozens of integrations, Docupace can streamline workflows, automate processes, and ensure firms run more smoothly and efficiently. Click here to schedule a discovery call to find out more.
