Reducing Compliance Risk through Operational Processes

Oct 2, 2023

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For many of us, compliance can seem like a dirty word. Too often, this necessary aspect of your RIA is seen as “anti-sales” or as being against advisors. However, compliance plays a vital role in protecting you and your clients. So, how can you develop a compliance department that is both effective and efficient?

In today’s episode, I discuss how you can integrate compliance practices with your daily operations. Additionally, I will look at the risks associated with non-compliance. Finally, I will provide practical tips for creating tools that can eliminate compliance bottlenecks and mitigate risks to your firm and your clients.

This week on The Financially Simple Podcast:

(0:52) Why do financial advisors cringe at compliance?
(2:50) What types of compliance risk might you have?
(4:08) The repercussions of non-compliance
(5:18) Test your processes and team for weaknesses or holes
(7:40) Create a compliance calendar
(9:44) Develop a ticketing system
(11:55) Build processes and structures for your compliance department
(14:02) Integrate compliance with operations

Our Favorite Quotes:

“If you do it right, the operational flow of your business can actually be a first line of defense to make compliance less burdensome.” - Justin Goodbread

“The compliance department works in a silo and doesn’t think about how operations or technology, or how other things can help them make their jobs easier.” - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

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Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”).

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