Hortz: What learning techniques have you incorporated in your software to help advisors and their firms simplify and imbed compliance into the DNA of their business?
Bartine: We tackle that from multiple directions. Most people learn business processes like compliance tasks through repetition. We make compliance consistent and easy to get done so that repetition is as powerful a learning tool as possible. SmartRIA also automates as much evaluation of compliance data as possible so you don’t have to learn what to do—you just have to do it. Further, we break the compliance process down into small bite-sized components that have their own specialized tools, and SmartRIA assigns tasks according to roles in the firm.
These automations, roles, and specialized features help our customers to avoid feeling overwhelmed, so they remain more open to learning about their compliance obligations. This “multi-directional” approach to improved compliance management has led several of our fast-growing RIA customers to say IARs regularly tell them our software makes understanding their compliance obligations easier than they have ever experienced before. Hearing that from our customers is music to our ears.
Hortz: What ways have you seen advisors incorporate their experiences and accomplishments on compliance with their clients?
Bartine: Once a firm has established a strong culture of compliance, we have seen “we are passionate about compliance so you can trust us” language become part of their websites, materials, and paperwork with clients. It is a powerful message to say that the firm actively pursues a culture of compliance and clients can expect that their advisor’s fiduciary obligation is being overseen and proven on a day-in-day-out basis. The wording of that will depend on the branding of the firm, but the core message is that the firms do not just pay lip service to the security of clients’ money. “It’s in our agreements. It’s in our branding. It’s in our communications with you. We genuinely care.”
Hortz: From your perspective, what industry trends do you see that are supporting this need for advisors to transform their thinking?
Bartine: Compliance trends change, as do the rules and regulations we have to follow. When firms focus on one thing over another to try to keep up with trends in regulatory exams, they run the risk of forgetting to do all the requirements, not just the ones they have heard are being looked for in exams. Said another way, if you are not staying on top of all your compliance obligations, then compliance will stay on top of you. It goes without saying that the latter of those options is not a fun experience.
Hortz: What best advice can you offer advisors on how to navigate the accelerating rate of change going on in the financial services industry?
Bartine: Get a technology tool like SmartRIA that includes a change management process for building new laws and rules into your workflow. Using Excel or other popular legacy solutions works, but it is very easy to let something slip through the cracks using that method, and much harder to prove your culture of compliance across the firm. Your life will be easier for taking that step of enhancing your compliance technology and you will have more time for growing your business and other areas of your business that you enjoy doing.
The Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial advisors and financial services firms determined to lead their businesses in an operating environment of accelerating business and cultural change. We position our members with the necessary ongoing innovation resources and best practices to drive and facilitate their next-generation growth, differentiation, and unique client/community engagement strategies. The institute was launched with the support and foresight of our founding sponsors—Pershing, NASDAQ, Ultimus Fund Solutions, Fidelity, Voya Financial and Charter Financial Publishing (publisher of Financial Advisor magazine).