Exempt Market Dealers Business Technology

September 12, 2016

5 Reasons for Exempt Market Dealers to use technology for their business

The private placements, also known as Exempt Market space is a fairly new segment of the wealth management and investment industry that has seen high growth and high demand in the recent years. With rapid growth comes rapid change that is affected by external and internal factors that include economic and regulatory changes, threat of new entrants and competitive rivalry.  Exempt Market Dealers are forces to adapt, review and redesign aspect of their business, particularly when it to technology to keep their business running.

FinTech has been a major focus for the industry, with more and more firms allocating larger budgets to efficiency and operations. As a leader in the Canadian wealth management industry, Univeris partners with a number large clients, such as Pinnacle Wealth Brokers to pinpoint the major keys when it comes to successfully running an exempt market dealer. Here are the top five reasons why EMDs need to use the best technology for a successful practice:

  1. Choose a software solution that stands the test of time

Technology is changing every year, every day and every month. We constantly hear about industry disruptors, new innovations and the latest and best in the world of tech. In fact, it is safe to say that no other industry grows as fast as this one.  But is the latest always the best? At Univeris we believe that choosing a solution that stands the test of time is key.  When choosing a vendor EMDs must ensure that the roadmap for growth and agility is closely aligned with their business strategy. For example, if one year you got that year’s “best and latest” because it was the hottest thing in the market and believing that in the future that would still be the dominant choice. As years go by, a lot of software solutions are not able to adapt, enhance and align their product roadmaps with market demand. When choosing a solution, dealers need to ensure that they are choosing one that is experienced, knowledgeable and evergreen.

Key factors to consider: Compliance with Industry Standards, Roadmap, Past Performance and Client Success

  1. Select a partner that offers a cloud-based solution

Investing in on-demand technology for on-demand growth is the second key to success. EMDs are optimal when all operational effort is centered on providing the best product and service.  Having a web-based solutions allows for easier integration and data management. At Univeris, we recommend exploring a Software-as-a-Service (SaaS) solution as the first choice.  A SaaS (also known as “web-based” or “cloud”) solution reduces any IT overhead costs involved with: data hosting, security, release provisions and more. This allows you to focus on your core business, continue growing and adding users and undergo continuous enhancements when there is a need with hassle-free releases. It also means you can run your business anywhere and anytime.

Key factors to consider:  Hosting facilities, security and service level agreements.

  1. Enterprise-grade functionality

We have all heard the saying “make your money work for you”? Well in the tech world it’s a lot similar in that you want to get the best technology that you can. Getting a cloud solution does not always mean you’re all set to go. Although it is a key reason when selecting a technology prover, the third key reason is to explore the functionality it offers.  With SaaS providers, such as Salesforce, Google and Univeris, EMDs have access to all the enterprise-grade functionality online. Choosing a cloud based provider should not equal to a “light” version of the system or a “basic” one. Exempt Market Dealers must explore the full suite of capabilities to ensure that their business is best serviced by full enterprise functionality.

Key factors to consider:  Client Success with similar clients and enterprise functionality.

  1. Chose built-in expert compliance technology

As mentioned in our opening, the world is changing and in the last 3 years the wealth management industry has changed a great deal. Concepts such as CRM2, FATCA, AML and others are no longer concepts but reality.  It is accurate to say that the exempt market may not be as regulated or as rigid as the banking or IIROC space for example. But it is now without its governance. The compliance rules are always evolving, regulations are changing and new amendments are often issued or revisited. Choosing a technology with built-in expert compliance saves you the headache of trying to keep up with all those changes. Once again, you can continue focusing on your core business and your clients.  Having built-in compliance in your software solution is a no-brainer for us, it means your business is set up for success when it comes to staying complainant and reducing the risk of any violations.

Key factors to consider: compliance is core not an enhancement, modification capabilities, monitoring and tracking of various rules.

  1. Pick a technology partner that enhances your value to your clients

The final reason and key to consider when picking a technology partner is to pick one that add value to your business and your clients. Technology should not be cumbersome, difficult to use or cause extra work – that in fact is the opposite of what good technology should do for your business.  At Univeris, we believe that we add value to our clients by ensuring their clients are happy – a consumer driven enterprise.  This means the suite of solutions is designed with Advisor and Investor tools such as: portfolio analysis, e-forms, automation, easy collaboration tools, digital workflows, reporting and more. Imagine having to click one button to get to what you need? Or to provide your investor with comprehensive portfolio overview with just one screen? Now, isn’t that a technology you’d want to partner with?


David Lai

Product Manager

This article has been published in the Spring 2016 PCMA Magazine

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