With increasing regulatory scrutiny in the investment advisory industry, having robust compliance procedures in place is crucial for investment advisers. Choosing experienced compliance consultants to review policies and procedures can help advisers avoid costly fines and regulatory actions. This article provides a review of key considerations when selecting the best investment compliance consultants.
Verify Credentials and Experience of Compliance Consultants
Before engaging any compliance consultant, it is important to verify their credentials and experience in the investment advisory industry. Ideal consultants should have 5-10 years of direct compliance experience at investment advisory firms, broker-dealers or regulatory bodies. They should also hold key credentials like Certified Regulatory Compliance Professional (CRCP) or Series 24 license.
Review Sample Compliance Deliverables
Quality consultants should be able to provide sample compliance manuals, risk assessment reports, compliance calendars etc that they have created for other clients. Reviewing such sample deliverables will provide a good sense of their level of expertise and ability to customize recommendations for your firm.
Understand Their Ongoing Support Capabilities
The regulatory landscape keeps evolving constantly so it is important that your compliance consultant provides ongoing support when new regulations are introduced. They should have the capability to update your procedures and manuals whenever regulatory changes happen and provide personnel training if required.
Compare Costs but Focus on Value
Although costs are important, balance that with the value the consultant can provide specifically to your firm. An experienced consultant who charges more but can help you avoid penalties and ensure robust systems may be more worthwhile than a consultant charging less but providing generic services.
Choosing the right compliance consultant is critical to effectively meet changing industry regulations for investment advisers. Verify credentials, review deliverables, understand ongoing support capabilities and compare costs to select the best consultant suited to your firm.