1. Back office backbone -Your back-office system should be able to help you identify and communicate with those clients affected by regulatory change quickly and efficiently. If it doesn’t, you’re likely to incur extra ongoing costs in manual client segmentation exercises that expose your business to unnecessary risks.
2. Use the right tools for the job - Your technology software provider should have taken upcoming regulation into account and give you confidence that the tools you use will fully support any changes you need to make. This should help you manage any change efficiently and without racking up additional costs.
3. Automate where you can - Ideally your tech should go further; automating many processes and monitoring when it comes to client consent and contact preferences (imminent under GDPR) while enabling you to set retention periods for documents, this will save valuable time, resource and costs.
4. Get smart on data - With GDPR the accuracy of the client data held in your business has to be accurate, easy to interact with (to enable you to comply with customer consent and portability requests), and consistent across all integrated technology touch points. If your data is not accurate and integrated, you’ll have to make sure it is. It's reasonable to predict this standard approach to data protection could see other countries adopt it too.
5. Check the small print - The direction of regulatory travel is clear; you’re going to have to hold a lot more client data for longer. It should not cost you extra to hold increasingly large amounts of data in the cloud. Check this one – we don’t charge for additional data storage but others do.
6. Make auditing easy - For those businesses operating across multiple locations, there is the additional cost of travel for your compliance officer to meet the requirement for random sampling of processes. Remote auditing via your technology solution not only removes this entirely, but if it also includes rules-based automated alerts, you have a dual system in place that's not only more cost-efficient, it can also give you greater peace of mind.
These are just some of the costs associated with regulatory compliance but there are likely to be more specific to your advice business.