Why Your Company Needs a Compliance Manager – Regulatory Compliance

If you have a business that is in the healthcare or financial sector, you already have a lot of things to worry about in order to keep your company running successfully. You are most likely being pulled in many different directions and you must hire people who are highly skilled and knowledgeable to help you out in the many daily operations of your company. You need to have complete trust in all of your employees and you want to be able to sleep soundly knowing that all staff members are following the many different mandates and laws that are in place for your field. You need to hire a successful compliance manage to round out your staff that can deal with compliance issues that can spring up at any point in the day.There are a large amount of duties that a compliance manager must perform on a daily basis to keep your business functioning properly and well within the legal limits. The manager of compliance has to be a person of high integrity that has received an undergraduate, or better yet a Master’s level, degree in accounting or actuarial science. This person must be comfortable with and interested by statistics and large amounts of data, as well as should be meticulous in their work and a strong leader who can juggle multiple tasks.The manager of compliance is someone who will hold a large amount of responsibility within a business. They must know all about the many different legal and regulatory procedures that pertain specifically to their field, which also means that they must know all about the complex insurance and finance dealings that occur within any sort of company. The individual who is in this role will be the most successful if they have specialized in accounting and they will need to have the necessary knowledge base to determine how a business can solve issues of compliance. They need to be able to map out specific strategies for meeting compliance in every single department of the company. Their methodology must be incredibly detailed and will enable them to effectively manage all areas in the company to ensure that each area is adhering to all of the many different mandates and regulations that have been set forth by third party regulators and the government. The compliance manager will have a firm grasp on all of the rules and laws that pertain to your operation.What does a standard work day for a compliance manager look like? Most of their time will be taken up with studying the laws and regulations and then developing plans for how the company can follow these. They will then set out clear plans that they can pass on to other department heads to train their employees on the ways that your company plans to handle compliance. They will continually check in with the departments to monitor that compliance is occurring. They will handle all inquiries from agencies that regulate the industry and will handle all legal matters.A compliance manager will keep your organization on the up and up even during these times of heavily increased regulations. You can keep your company’s nose clean by having a skilled manager of compliance to keep your company on the right path.

How To Motivate Relationship Managers in the Face of Stiff Internal Compliance Regulations – Regulatory Compliance

Relationship managers (RMs) represent the financial products and services of the wealth management firm or bank as frontline representatives. In light of increasing compliance complexity and regulatory oversight, RMs must know the customer’s goals and risk appetite. The ‘know your customer’ (KYC) process enables the RM and his firm to present products and services that mesh with the customers’ needs. In turn, the KYC process allows the firm to provide greater investor protection one customer at a time.Asia’s thriving economies have produced millionaires with an entrepreneur’s need to know about the components of his portfolio. Asia’s affluent customer wants to know why the firm’s RM or investment sales team recommends a product or service. High tax rates, political uncertainty, regulatory restriction, and a small talent pool prompt wealth management clients to transact business in investor-friendly Hong Kong and Singapore.Asia Market Wealth Management Trends
According to Oracle research, five key trends affect the Asia marketplace, including:1. Entrepreneurial ‘need-to-know’ investment clients: Unlike traditional wealth management clients, the typical Asian client asks questions and requires one-on-one interaction with the RM;2. Lengthy KYC processes: Regulatory environments in the world’s financial markets currently focus on customer protection and preservation of capital. RMs must ask questions, collect information about the prospective client’s assets and risk profile;3. Small RM talent universe: Competitor firms compete for the services of trained RMs. The small talent pool causes clients to follow RMs and draws capital and revenues from the firm;4. High back office and operations costs: Many firms invest heavily in the frontline or ‘front office,’ leaving a woefully ‘low-tech’ and man hour-intensive back office. Proper settlement of transactions and up-to-date portfolio valuations is ideally supported by technology investment;5. Client demand for Asian financial brands: The global financial crisis (GFC) left many of Asia’s affluent clients wary of international banks and advisers.Automating the Client Onboarding Process
By automating the onboarding of new clients, firms seek to offset and allay higher front office costs. An automated process requires that clients are asked a certain number of important questions about assets, income and risk. Creating the customer risk profile allows firm personnel to follow prescribed check lists and rules. Since all customers are asked the same questions every time a new account is opened, the firm minimises compliance risk while reducing costs to capture the information. “Straight through processing,” a familiar retail banking process, makes cost-effective sense.Documentation and Reports
Data management/extraction and analytics tools for customer reports and documents support RMs’ ability to present and persuade clients to make decisions. Current real-time portfolio data is essential to performance discussions or making buy and sell recommendations. Standardised reports and graphs enable the RM to spend more time generating revenues. Sophisticated analytics, e.g. portfolio stress tests or scenario analysis, support RMs’ presentations to demanding and detail-oriented clients.RM Performance
According to McKinsey & Co.’s Private Banking Survey (2012), performance expectations of the RM may vary widely. Research concludes that almost all RMs devote too much time to administrative work. Reducing RMs’ need to perform these tasks could improve RM revenue production by 15 to 20 percent.When processes exist, many RMs fail to adhere to SOPs. Many firms do not provide performance training or coaching: for that reason, RMs receive little coaching or encouragement to develop valuable skills. In addition, McKinsey recommends that by standardizing operations and shortening lead times, firms could gain 15 to 30 percent in improved efficiency. Coaching RMs in the sales and client acquisition process could increase the RM’s new client assets by 5 to 15 percent.McKinsey’s research encourages firms to consider the potential of extended low margins. Training new RMs and coaching client development skills while investing in middle and back-office technology drives down costs.Technology and Cost Management
Costs to capture and serve clients, combined with compliance and compensation costs, continue to create bottom-line pressures for Asia’s banks and wealth managers. Business process management and technology help to offset these rising costs while creating higher efficiency. The firm’s investment in technology supports its commitment to serving sophisticated customers as it submits to existing or changing compliance requirements. Sage offers customized solutions that address these crucial needs.