Compliance software should play a greater role in practice management, according to a new report from the Financial Planning Association. The recent compliance edition of the FPA-ActiFi 2010 Advisor Technology Reports suggests advisors should think holistically about compliance, rather than view it as an ancillary practice activity. To that end, they should use the same tools, processes and people to manage compliance as they do to manage other practice functions.
The report, based on an FPA survey of 338 advisors, found the majority of advisors do not use compliance software in their practice. However, those who do say they're satisfied with it. In addition, 68 percent of those surveyed say such software provides peace of mind, 64 percent report productivity
gains or time savings, and 48 percent were able to enhance client service.
The report also revealed how advisors actually use their compliance software. Specifically, 62 percent use software to develop policy compliance manuals; nearly 49 percent to document that materials have been checked for compliance; and nearly 48 percent to assure that clients are receiving necessary disclosures.
