In today’s aggressive regulatory climate, “that’s how everyone does it” is not enough to exonerate an investment manager whose employee accidentally typed the wrong performance number into a marketing or client presentation as he or she headed out the door. At the very least, industry best practices that are still being developed are likely to become the “new normal,” and if better processes were available, it will be incumbent on the firm to explain why they were not employed.
This article discusses the last mile problem: how it manifests in most investment advisory firms; common examples of operational, regulatory and legal risk events; and how investment advisers can use technology to reduce errors in investment results reporting caused by manual processes.
IAA Newsletter, Compliance Corner - January 2016
15 January 2016