Technology Is Making Compliance Departments More Proactive
Compliance Veterans From Orion, RFG, Angeles And Surge Share How Technology Is Changing Compliance Departments Across The Industry
Wealth Solutions Report 5/21/24 (Written by Larry Roth, Co-Founder of Ascentix)
Regtech (regulatory technology) has been seen as a necessary evil at firms – it can tie up a lot of funds and resources – but it’s better than the fines and ensuing bad reputation that comes from noncompliance. Fortunately, our industry’s compliance departments have received an injection of innovation within the last few years, which has made some regtech processes increasingly efficient. That being said, there is still more work to be done.
For instance, advisory firms must ensure all their communications are compliant. That’s not just emails but also – as our industry knows all too well from nearly $3 billion in fines – text messages, iMessages, WhatsApp and others. Any overlooked message could draw a fine. On the flipside, there are often many false positives that can be overwhelming to review. That’s where regtech weeds out the unnecessary information while delivering compliance officers a clear view of exactly what they need to see.