The role of superior back- and front-office technology
An exempt-market dealer (EMD) is only as good as its dealing representatives (DRs). That means hiring the industry’s best DRs should be a top priority.
Financial incentives are typically the most effective way to attract top talent, but in an environment where firms are competing fiercely for the most skilled hires, those incentives aren’t enough. It’s the non-financial, intangible incentives that ultimately win over the best of the best.
This is where EMDs that manage compliance with a cutting-edge, unified technological platform are at a distinct advantage.
Everyone in the investment industry knows how much their compliance burden has increased in recent years. This is especially true for the already document-heavy exempt market. A good part of this increased compliance burden falls squarely on the laps of DRs. It’s the DRs who gather Know Your Client (KYC) (and much of the other) information that makes it possible for exempt market issuers to connect with investors.
Managing this document flow with anything less than the most advanced digital platform is a daunting and extremely time-consuming task. Some information might be retained in paper-based forms, which are easily lost or misplaced; other details might be stored on Excel spreadsheets; still others will make their way onto a loosely or poorly integrated digital system that seems at times to create more problems than it solves.
Compare this to a record management platform that seamlessly unifies every piece of information into an interface that DRs can take with them wherever they go, whether on a laptop or tablet. DRs using this system can view the entire client record – forms, approvals, KYC information, statements, email correspondence, and more – anywhere, anytime.
A unified digital platform will also automate key steps of the compliance chain. Does a specific investment involve an issuer that the DR has a personal financial relationship with, outside his or her capacity as a DR? To make the investment through this DR, the client must sign a special form. With a state-of-the-art digital record management system, the investment will automatically be blocked unless the form appears in the client’s file. Without such a system, there’s a greater probability of oversights that could lead to disciplinary action by the regulators.
Now imagine a DR deciding between two potential EMDs. One does compliance the old way, leaving the DR with a burdensome, time-consuming process rife with potential for error. The other EMD has a fully unified, visually intuitive digital platform that lets the DR take his or her entire business anywhere at any time. This effectively eliminates the possibility of compliance-related oversights and allows the DR to spend more time developing new and existing client relationships.
The choice is clear.
The best approach to record management and compliance doesn’t just make it easier for EMDs to keep the regulators happy. It also makes it easier to attract the best DRs in the business, which makes your business better.
VP, Product Management
Contact your Univeris representative for more information about the technology options that are right for your firm.