Advisors trapped in web of compliance issues

Multiple product lines require compliance with multiple regulations – rules often inconsistent across regulatory silos, say advisors

Multiple product lines require compliance with multiple regulations – rules often inconsistent across regulatory silos, say advisors.

“This fracturing of client information across regulatory silos has made it next to impossible for advisors to get a complete, 360-degree view of their clients’ overall financial situation,” says Rick Hyde, head of technology, strategy and regulatory compliance for Ticoon Technologies. “Ask any financial services business in Canada – from large firms to individual advisors – about their biggest business challenges today and regulatory compliance will be at or near the top of the list.”

It is a problem made worse by technology platforms that have evolved to operate in compliance with a single regulator.

Regulation of the financial industry has increased in the past two decades, particularly in the years following the 2008 global financial crisis. And as digital technology has become more widespread, new rules and regulations are being enacted to protect consumer privacy and ensure data security.

“Yet, all of these new regulations are being layered on top of an already siloed financial system,” says Hyde, echoing advisor calls for amalgamation of oversight under one roof. “Making it even harder for advisors to get a complete view of their clients’ financial situations and offer them suitable recommendations and comprehensive services.”

Rather than continue to make investments in building in-house technology solutions to keep up with the evolution of regulatory rules, financial product and distribution organizations need to consider a new generation of cloud-based platforms and lower-cost, out-sourced technology solutions, says Hyde.
 

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