July 18, 2012

Is Compliance a Cost or an Investment?

We all hear plenty about the rising costs of compliance for registered investment advisors. While this is certainly a real, observable trend, is all of the effort and money you expend on regulatory compliance simply dead weight on your firm's P&L?

Sure, regulatory oversight is expanding and all indications point to more (not fewer) audits in the future. (This is especially true for smaller advisory firms.) So if you're likely to be spending more to implement your compliance program, we say why not find opportunities to capture added benefits that come from these activities?

We have always rejected the notion of "compliance for compliance sake". We challenge our clients to identify ways to not only blend compliance responsibilities into their every day work flows but also seek ways to "repurpose" these activities in ways that will make them a stronger business.

So what are some of the ways to actually achieve a positive return on your compliance activities? We recently presented this idea to a group of very successful RIAs in Philadelphia and we wanted to share it with you as well.

We welcome your thoughts and feedback on this unique perspective on compliance "costs"!


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