What is a Compliance Consultant?

As registered investment agent (RIA) compliance consultants, two common questions we listen to principals of advisory firms are: 1) why must I make use of a compliance consultant? and a pair of) so how exactly does your firm's service rival what law practice? They are great questions so we desired to make use of this publish being an chance to go over the various situations that might or might not seem sensible to have an RIA firm to utilize a compliance consultant.

The benefits of Preventative Care In comparison to Er Care

Consider a compliance consultant similar to one considers utilizing preventative care instead of always going to the er (ER) for health care needs. ER care is costly and ideally not being utilised unless of course essential. The best RIA compliance consultant will help keep a good investment advisory firm from trouble by continuing to keep the firm conscious of the appropriate rules and supplying a persons expertise and technology platform to assist the firm meet its ongoing regulating needs.

However, the nearest equal to ER care within the RIA world is using investments lawyers. To become obvious, when an problem arises, having to pay a premium price for any competent investments lawyer is your path to consider. However, utilizing costly legal support billing on an hourly basis to assist with daily compliance management and audit preparation can be very pricey. The price structure of numerous lawyers prevents them from having the ability to provide inexpensive investment agent regulating support.

Frequently, we receive inquires from advisory businesses that have recently received observe that the firm includes a regulating problem that's being known to some condition or federal level enforcement division for potential law suit. Regrettably, with that point, the RIA firm is within a lot more will need a investments lawyer as opposed to a compliance consultant. Whenever a firm already includes a serious problem having a regulator, less expensive preventative regulating care is no more a option. Our compliance talking to service doesn't provide any kind of legal support and we're always very upfront about this with this clients.