New capabilities save time and cost spent on compliance monitoring while maintaining a high quality of reviews
PHILADELPHIA, July 23, 2019 /PRNewswire/ — InvestEdge, a leading provider of innovative financial advisory solutions, announced the release of Compliance Middle Office Management (Compliance MOM), offering new capabilities to its compliance monitoring system. These new capabilities are designed to reduce compliance costs incurred by wealth managers while maintaining the quality of each conducted review.
Compliance MOM centers on three key features that reduce the hours spent by high-earning advisors conducting reviews without sacrificing quality, thus allowing wealth managers to cost-effectively scale their businesses:
- Quality Control Process — Compliance MOM’s randomization algorithm for quality control takes a page from the manufacturing sector by selecting a random, statistically valid percentage of total reviews for a second review. Traditionally, every administrative and investment review is double checked by a second employee. Compliance MOM’s software significantly reduces the number of second reviews by randomly selecting a portion for a second look. Research has shown that when employees understand that their review may or may not be randomly selected for a double-check, the overall quality of the initial review increases. By cutting down on the number of secondary reviews, wealth managers save countless hours that can be spent on revenue-generating tasks.
- Task Reassignment — Compliance MOM can free up additional time for high-earning, front-office managers by assigning less sensitive, routine administrative reviews to middle-office employees. Combined with the hours saved by cutting back on the total number of reviews, wealth management firms are able to significantly reduce the amount of time and cost associated with compliance without sacrificing quality.
- Configurable Review Types – In the past, firms were limited to two traditional review types, Administrative and Investment Reviews. Compliance MOM provides wealth managers with the capability to build multiple review types that can be based on an unlimited number of characteristics such as account type, risk or the cycle on which the review should be completed. This increases a firm’s ability to streamline work and the management of reviews to meet business needs.
“By looking at quality control best practices in other industries like manufacturing, we were able to devise a unique solution that saves time and money for our wealth management clients without reducing the quality of reviews, thus providing a clear path to cost-effective growth,” said Jeff Cowley, Chief Technology Officer at InvestEdge.
Compliance MOM is an enhancement on InvestEdge’s industry-leading compliance oversight and fiduciary monitoring tools. In 2018, this software oversaw nearly $1 trillion in client AUM from 175 various asset classes and resulted in no known customer issues and $0 in regulatory fines to date.
“The randomization algorithms leveraged by Compliance MOM have the potential to revolutionize the way compliance monitoring is conducted industry-wide,” said Brian Burns, President of InvestEdge.
“Each firm must clear the usage of this software with their individual regulator, but the responses we’ve received from our customers and prospective customers so far has been overwhelmingly receptive and positive. This addition to InvestEdge’s suite of integrated technology tools further empowers wealth managers to focus on growing their business and providing the best client experience possible.”
For more information about Compliance MOM, visit https://www.investedge.com/what-we-do/compliance-monitoring/.