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28 April 2022

Embracing RegTech to Support FINRA and SEC Compliance and Oversight

As wealth management and investing become increasingly complex, with new services, products, and regulatory requirements seeming to multiply every day, advisors and their respective compliance teams are being stretched to the limits. Particularly as most data and transaction advisory firms receive arrive in digital form, there is a renaissance in regulatory technology (RegTech) designed to simplify and streamline compliance and regulatory workflows. As such, there are now more RegTech options than ever before, creating opportunities for advisory firms to elevate and enhance how they are managing the changing regulatory requirements.

According to the latest whitepaper from SS&C, “The industry is moving beyond paper-based processes and becoming increasingly digitized, generating growing amounts of data that need to be analyzed to identify issues. In addition, as firms add more investors, assets, and transaction volume, their compliance and surveillance demands also grow. As a result, regulatory technology has become a must-have in any firm’s compliance program.”

This new whitepaper, Understanding RegTech: How to Manage the Increasing Complexity of Compliance, couldn’t have come at a more opportune time as the demand and competition for compliance officers is increasing.[1] As a result, wealth management firms need comprehensive RegTech now more than ever to provide the operational efficiencies firms need as they continue to grow.

According to the whitepaper, a comprehensive, integrated RegTech platform needs to encompass a variety of core compliance concerns, including supervisory, employee trade and activity monitoring, senior abuse surveillance, investment suitability, anti-money laundering monitoring, and market manipulation surveillance. Firms can no longer rely on spreadsheets, notes in their CRM, and a digitized trade blotter combined with manual workflows to survive a regulatory audit. Instead, they need a fully-featured RegTech platform that can provide policy and procedure documentation, productivity, risk reduction, and peace of mind for firm principals.

Additionally, by integrating a comprehensive RegTech platform into their core portfolio management and reporting system, firms gain needed efficiencies, scale, and productivity enhancements to continue to grow their firms by increasing capacity. Advisory firms using SS&C’s Black Diamond® Wealth Platform and Risk & Compliance Intelligence (RCI) solution can leverage a unified RegTech platform that provides the foundation for compliance excellence. As these systems integrate seamlessly, RCI can leverage Black Diamond portfolio and client account data to ensure compliance with the most demanding regulatory and supervisory requirements.

Regulation is a fact of wealth management life, and compliance won’t get any easier. The good news is that the technology is here today to lessen the burden associated with compliance. So as firms plan for the technology investments that will enable them to compete and grow in the future, RegTech should be high among their priorities,” concludes this must have whitepaper.

To learn more about how RegTech is changing the game for compliance everywhere, download the complete whitepaper or request a personalized Black Diamond & RCI demo today.


[1] Sun, Mengqi, “Competition for Compliance Officers Intensifies Amid Regulatory Pressures,” The Wall Street Journal, January 19, 2022