You’re a compliance professional who knows how to get the job done, but even experts sometimes need outside help. New regulations and violation risks create new demands on your team and your compliance program. It can be difficult to keep up with all these changes while still maintaining the pristine level of compliance regulators expect from financial firms. The answer? A trusted third-party partner to supplement your efforts with managed services and consulting.
In this blog series, “the pillars of regulatory compliance,” we cover resources which you may consider when building (or expanding) your firm’s compliance program. Last time, we talked about the impact regulatory compliance technology. Today, we’re focusing on regulatory compliance consulting and outsourced managed services: when you need it and how third-party partners can help you avoid violation and remain in compliance for the long-run.
Achieving critical compliance goals: Managed services vs. compliance consulting
Your compliance program demands accuracy to properly mitigate risk. However, the type of solutions you require will depend on the challenges your facing and the concerns you need addressed.
First things first, what is exactly is the difference between managed services and consulting?
Compliance consulting is a solution in which firms bring in an outside expert to test the efficacy of their program. Managed services, on the other hand, is a broader set of services, sometimes encompassing consulting, which supports everything from administrative tasks to audit prep and program maintenance.
Compliance consulting
With compliance consulting, your investment firm relies on the expertise of compliance professionals to help your firm meet regulatory requirements and remain in compliance while minimizing burdens on business processes. Compliance consulting can help your firm:
- Identify gaps in its regulatory compliance program.
This can be done through an evaluation of your firm’s compliance policies, procedures and records. Compliance consultants can not only determine areas of improvement but offer actionable insights to empower you to take your firm’s compliance program to the next level. At NRS, consulting services are offered remotely and on-site.
- Build a culture of compliance at your investment firm.
Often, compliance consultants are former compliance professionals and regulators who know what it takes to build a robust compliance program. With decades of experience supporting their expertise, compliance consultants can act as a true partner and resource for your firm, highlighting tactics to help you build and maintain an active culture of compliance.
- Keep a finger on the pulse of the regulatory landscape.
Compliance consultants can offer continuous insight and applicable best practice solutions to tackle timely regulatory issues. With their pulse on the industry, and their depth of regulatory knowledge, compliance consultants amplify your compliance efforts and ensure you stay up-to-date with the latest industry alerts.
Managed services
With managed services support your firm gains a partner in compliance, complementing your existing team and resources with expertise in technology and compliance program management. Managed services can help firms with:
- Initial implementation and ongoing support
If you have recently invested in a new compliance technology, you may be faced with establishing an optimized system which supports your compliance program’s initiative. A daunting challenge for even the most resource-heavy firms. With the support of a team of technology experts, your firm can easily take on the initial implementation and benefit from ongoing support to ensure your technology always delivers the expected ROI.
- System maintenance and administration
System administration and maintenance may be a necessary aspect of your compliance program, but it is likely also one of the most time-consuming. With managed services support you can rely on a team of experts to maintain and manage aspects of your employee personal trading monitoring, certifications and attestations, gifts and entertainment, outside business activities, private placements and restricted lists.
- Mock audits and program optimization
Are you ready for a regulatory examination? With mock audits and prep, you can be sure your program is functioning at its peak, adjusting any policies and procedures to ensure you are prepared should you face a regulatory examination in the coming months.
When your investment firm should bring in a trusted third-party partner
In the past fiscal year, the SEC collected $6.4 billion in fines for violations, many of which were for preventable rule violations. Such violations not only cost your firm money but can cost your hard-earned reputation. And that’s where a third-party partner can help. Let’s break down when you might need consulting services vs. managed services to supplement your team.
You might need compliance consulting services if:
- A regulator rolls out a new rule or amendment that applies to your firm.
- Your firm hasn’t assessed its compliance program in over a year.
- Your firm is repeatedly experiencing the same compliance risks.
- Your firm has violated a regulation.
Whereas, you might need managed services if:
- Your day is overrun with administrative, time-consuming tasks like chasing certifications – leaving no time for big-picture projects.
- You run a lean compliance team.
- Your firm is assessing the cost of running its compliance program.
- You could use a second set of eyes to double and triple check your critical compliance tasks.
The COMPLY portfolio of firms offers managed services and consulting solutions which support your firms compliance goals and enable you to manage the ever-increasing complexities of the compliance landscape with ease and precision.
Think we might be the answer for you? Schedule a demo today!