Blog Article

Enhancing your regulatory compliance program: Choosing the right Managed Services provider

Nov 03, 2023

As a compliance professional at an investment firm, it can be hard to meet the demands of your daily workload and focus on value-adding tasks when you spend so much of your day on administrative work. This is especially true if you’re at a smaller investment firm or a part of a smaller compliance team.

For that reason, outsourcing the administrative aspects of your firm’s regulatory compliance program can be a game-changer. Find out how.

In the dynamic world of financial regulations, the role of compliance professionals is crucial. However, the ever-increasing administrative workload often diverts attention from strategic initiatives. For financial firms, shifting the administrative aspects of regulatory compliance programs to a vendor with expertise is a strategic move. However, given the numerous and varied compliance requirements, any old managed service provider won’t do. In order to ensure ongoing efficacy and efficiency for your team, you must select the right provider to meet your firm’s unique needs.

To help get you started, we’ve put together a guide to help you make the right choice!

Key Considerations in Choosing a Managed Services Provider

If the right Managed Services provider is selected, outsourcing administrative tasks can be a game-changer, freeing up your time and resources to focus on more impactful activities. The right Managed Services provider acts as an extension of your in-house compliance team. However, if the wrong Managed Services provider is selected, that can create a bigger headache for your firm’s compliance team to handle. Here are some key considerations to help your firm select the right fit:

1. Evaluate your firm’s unique needs.

Identify the specific administrative tasks that are consuming your time and resources. Whether it’s code of ethics administration, email review, political contribution oversight, licensing and registration, advertising review or broker feed maintenance, a clear understanding of areas needing more coverage or improved efficiencies will guide you towards the MSP that best fits your profile.

2. Expertise and specialization.

Look for an MSP that specializes in regulatory compliance for financial firms. Their expertise should align with your firm type, such as private equity, and the specific tasks you aim to outsource. Ask for case studies or references to ensure they have a proven track record in handling similar responsibilities.

3. Scalability.

Your firm’s needs may evolve over time, and your MSP should be able to scale its services accordingly. A flexible provider will accommodate your growth without compromising the quality of service.

4. Regulatory knowledge.

The financial regulatory landscape is complex and ever-changing. Ensure that the MSP you choose has a deep understanding of current regulations and stays abreast of updates. This knowledge is crucial to helping your firm navigate compliance challenges effectively.

5. Technology integration.

Consider how well the MSP’s technology integrates with your existing systems. A seamless integration ensures efficiency and minimizes disruptions. Additionally, inquire about their approach to technology updates and optimizations.

6. Compliance culture.

Select an MSP that aligns with your firm’s compliance culture. They should not only understand regulatory requirements but also share your commitment to maintaining the highest standards of compliance.

7. Transparent communication.

Communication is key in any partnership. Choose an MSP that values transparent and open communication. Regular updates, clear reporting and responsiveness are indicators of a strong and collaborative relationship.

Complying with COMPLY

At COMPLY, we understand the challenges faced by compliance professionals in the financial sector. Our Managed Services group acts as an extension of your compliance team. Our Managed Services modules are tailored to meet your firm’s specific needs, providing comprehensive support across various compliance tasks. Our Managed Services team would act as an extension of your firm’s in-house compliance team.

By choosing COMPLY, you not only gain a trusted partner in compliance but also a team dedicated to enhancing your strategic initiatives by managing the administrative burden effectively. Make an informed choice for the success of your regulatory compliance program today.

Think it might be time to bring in outside help to take the burden off your compliance team? Let’s talk!