Originally published in Financial Planning

By Yvonne Kanner

For many RIA’s, compliance is a dull, non-revenue producing part of their business, often consisting of little more than an old box of legal and regulatory Band-Aids applied ineffectively and inconsistently.

Founders are the biggest offenders when it comes to poor compliance procedures. Some say they are too distracted by other, revenue-producing work. Indeed, the most common excuse I hear is this: “But I’m busy taking care of the client.”

Others consider compliance a task for junior staffers, or, worse, the regulations only apply to junior staff. And a few lunatics likely believe the rules do not apply to anyone at their firm.

Others, meanwhile, balk at the expense for legal advice that specializes in the Investment Advisers Act of 1940. They opt instead for cheaper advice from consultants or they go for broke by using the all-knowing law firm of Google, Wikipedia and Yahoo LLP.

So, with all of this mind, here is a checklist for making sure you and your firm have followed the procedures guaranteed to provoke a puzzled look, wide eyes — if not outright laughter — from an inquiring buyer, auditor, forensic accountant or a subpoena-waving lawyer.

Read the full story at https://www.financial-planning.com/news/how-to-destroy-your-firm

Yvonne Kanner is President and COO of Fiduciary Network.