More On Legal & Compliancefrom The Advisor's Professional Library
- Suitability and Fiduciary Duty Recommending suitable investments is more than just a regulatory obligation. Many investors bring cases claiming lack of suitability, so RIAs must continuously put the onus on clients to notify the advisor of changes in their financial situation.
- Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firms policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.
Regulatory Compliance has introduced a service intended to streamline service offerings for clients in a clear, logical manner so that they can stay on top of regulatory deadlines and filings.
The firm, which provides consulting and compliance offerings for broker-dealers and RIAs, says that the new program, available in several different levels, can be tailored to fit each company’s compliance program needs.
Dennis McCarron, chief operating officer at Regulatory Compliance, said in an interview that since the firm does compliance and registration consulting for RIAs, hedge funds, private equity funds, BDs, M&A firms and third-party marketers, among others, the consulting programs have been designed into different groups.
McCarron, who said he brings a client perspective to the table at the firm, adds that the Partner Program was originally known as Compliance Partners and now in its new incarnation provides “different levels of services to serve different levels and complexities” of the businesses that make up the firm’s clientele.
For RIAs, there are three different levels: Pro, Plus and Elite. For BDs, there are four: Express, Pro, Plus and Elite. The Elite level, said McCarron, is set up to “help [client firms] execute on everything.” The firm will design a compliance program that meets expectations and supports the client’s long-term growth.
The Elite partner, added McCarron, will “talk with the compliance officer and team, and also with the CEO” in the course of determining the firm’s growth aspirations so that the program can be tailored to provide the support it needs to execute its long-term plans.
“Compliance is part of your business, where historically it has not been,” McCarron said. “With all the rules and regulations coming down the road, business is more dependent on compliance functions than it has been in the past. [The Partner Program] will get [client] businesses to understand the properties and functionalities of compliance.”