In October 2022 the SEC proposed new rules to establish a more vigorous oversight structure for RIA’s who outsource advisory functions to service providers. Whether the rule becomes law or not, the proposal signals a new focus from regulators on an advisor’s service provider due diligence and monitoring obligations, and audits are likely to target this area.
Unfortunately, most advisors don’t have the time or staff resources to devote to this increasingly important regulatory issue – especially the ongoing monitoring duty. As a Chief Compliance Officer, I realized that the time and effort necessary to research and watch more than 20 different service providers was hindering my ability to do the rest of my job. I needed help!
To solve this problem, we created the RIA Due Diligence and Monitoring Platform. A low-cost service operated by experienced compliance professionals and designed to manage the entire due diligence and monitoring workload. The only job left for the CCO is a periodic review of our work.
Here’s How It Works
- We build your firm’s Due Diligence and Monitoring Program
After you furnish us with a roster of your service providers, we build your firm’s Due Diligence and Monitoring Program using our partner Onehub. This online workspace satisfies your Books and Records requirement and is available for review 24/7. - We write your Policies & Procedures
Most RIA’s don’t have written Policies and Procedures for their service provider compliance program. They should! We’ll write yours and customize them to the unique needs of your practice. - Dedicated workspace for documentation
Each service provider has a dedicated folder in the workspace containing everything RIA’s need to know about their services and operations including contact information, cybersecurity documentation, data privacy, disaster recovery and business continuity plans, regulatory disclosures, information on key personnel, and much more. - We perform and satisfy due diligence requirements
Hiring a new service provider or looking to purchase or merge with another RIA firm? We’ll do a “deep dive” into what they do, how they perform, and if they have any regulatory issues. - We frequently monitor your service providers
This is the area that creates the biggest problem for most RIA’s. They just don’t have the time and staff to monitor regularly and do it well. We monitor for regulatory problems, customer complaints, management changes, job performance, financial issues, and anything else that might affect their performance. - Audit ready and we help you respond to auditors
When the auditors come calling, your service provider due diligence and monitoring books and records are complete and ready to pass review with flying colors. We’ll help you transfer the information they request in the format they desire. - You own your documentation
If you discontinue our service, the information is available to you on our platform for a period of two years and then available for permanent download thereafter.
Other Due Diligence Services
- U4 Certifications
- Additional due diligence work on other RIA firms.
- Standard compliance services including:
- New registrations
- Compliance consulting at hourly or retainer rates
- Chief Compliance Officer Service
- Deficiency Letter Responses
- Practice Management Consulting