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Regulation and Compliance > Federal Regulation

Having a spotless record pays dividends

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Who says it doesn’t pay to play by the rules? Having a strong compliance record provides an extra edge in several areas:

  • It helps earn references and referrals. Advisors who take the high road may earn the trust of clients and professionals — CPAs, attorneys, etc. — who are in a position to recommend them.
  • It’s a difference-maker with corporate/group clients. Advisors who work with groups should be prepared to have their compliance records vetted by HR departments. In an RFP situation, firms whose records aren’t squeaky-clean may find themselves at a disadvantage versus firms they’re bidding against.
  • It tells clients you pay attention to their needs — and to detail. A clean record indicates you have a firm grip on all aspects of your practice.
  • When changing firms or applying for a new license, having a clean compliance record helps expedite the process, while blemishes can derail it.
  • It can lead to professional honors and appointments. A strong compliance record can yield professional distinctions, appointments to key industry committees and coveted board seats — all of which can open new doors for a practice.
  • A sparkling compliance record gives clients peace of mind. It functions much like a client testimonial by speaking to your integrity and encouraging people to perceive you as trustworthy.