New Requirements Are Coming. ‘Compliant by Design’ Is the Answer

Augmented Intelligence

Working in conjunction with smart workflow automation, augmented intelligence can provide a rules-based ecosystem that allows a firm to embed compliance throughout its system, placing its most critical compliance needs, such as cybersecurity, in the foreground of all its workflows.

Augmented intelligence also knows how to get out of the way — catching the attention of the right employee at the right time, while continuously monitoring the entire network for possible breaches. Much like a lifeguard on a crowded beach, augmented intelligence sees everything while allowing activities to unfold but stays ready to jump in the water to save a life.

The pandemic accelerated cloud adoption in unexpected ways. Firms had to scramble to adjust to a new work environment. Advisors who are part of a scaled network that traditionally required them to work in an office started to and continue to work remotely today.

These advisors need a nimble cybersecurity compliance platform that guards against cloud cyberattacks while providing system and communications protection, as well as access control in the form of multi-factor authentication.

Whitelisting IP addresses also helps compliance teams gain control of who has access to the network. All personally identifiable information in transit should be encrypted while shipped from user input to a data center. When it comes to being compliant by design, the solution lies embedded in the details of a smart workflow informed by augmented intelligence ecosystems.

Do the Right Thing First

The chief compliance officer at a wealth management firm is often the last line of defense. This C-suite executive does not have the capacity to be in every conversation or to evaluate every piece of data captured by the system.

But by identifying, managing and treating risk in the context of a workflow rules capability — and accessible through a role-based app or a dedicated workspace that allows users to view information on a dashboard aligned with their top data priorities — firms can allow technology to maintain a first line of defense.

Once such a system is in place, compliance officers can access the updates they need. Because this information is holistic, provided in real time and doesn’t rely upon human capital to identify an error, it allows the industry to be compliant by design and do the right thing the first time.

Vulnerabilities or gaps are flagged and promptly addressed, well before human detection — enabling wealth managers to stay one step ahead of anticipated regulations and focus on what they do best: build relationships with their clients.

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Adrian Johnstone is the president and co-founder of Practifi, an enterprise-grade performance optimization platform designed for high-performing financial advice firms.

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