The Chief Compliance Officer (“CCO”) of a registered investment adviser (“RIA”) firm understands the challenge that comes with keeping up to date on the latest regulatory changes while also ensuring that all daily, weekly, monthly, and annual compliance tasks are completed. However, just completing the required tasks is often insufficient. All completed tasks need to be properly documented to be able to demonstrate the proper implementation of a compliance program during a regulatory audit.
Historically, many RIA firms have chosen to leverage manual processes for creating a compliance calendar of activities, for documenting internal compliance and best execution reviews, and for managing the collection of employee attestations or outside business activity requests, to name a few. While some firms have leveraged traditional technology such as a Microsoft Excel spreadsheet, many firms still utilize pen and paper for a significant portion of compliance documentation. For firms large and small, manual processes mean more paperwork, more risk for mistakes, and less centralization. While Excel may offer relative benefits compared to pen and paper, it’s not specifically designed to be RIA compliance software and thus requires a tremendous time investment to customize from scratch.