Bank Compliance

Buyer’s process: selecting and buying new compliance technology for your investment firm

Fact: buying a new compliance technology can be a huge undertaking. Whether you’re an investment advisory firm moving away from manual processes or a hedge fund or private equity firm transitioning between compliance platforms, you must prioritize long-term success rather than settling for what seems easiest in the short-term if you want to get the most out of your new regulatory compliance technology.

This means making an investment. Your firm will have to invest money, time, resources and energy into selecting a new (and ideally effective) regulatory compliance technology. As a part of that investment and work, your firm will have to determine who should be included in the process of assessing and selecting the new compliance technology.

Who should be involved in the process of assessing and selecting new compliance technology for your investment firm?

While your compliance team will likely be the most active users of the new compliance software, your firm should consider creating an internal team which reflect users of the platform from various departments. By leveraging a team inclusive of departments such as IT and HR within your advisory firm, you gain the unique perspective of end-users with different goals and needs. Conversely, if your buying team is solely made up of the compliance department, you may overlook critical requirements which could impact the overall usability of the platform.

Given regulators’ emphasis on cybersecurity, it might be helpful to include members of your IT team in the process, as they will be a critical resource for system integrations and data migration. Digging deeper, your firm will want to determine who in your IT team should be involved in the selection and maintenance of the compliance technology to ensure the individual(s) have full working knowledge of the selected technology.

Your IT team can offer thoughtful insight into what to consider in selecting a new compliance technology. These points might include:

  • Scope.
  • Timing.
  • Delivery.
  • Responsible parties.
  • Load testing.
  • Cost/benefit analysis.

Looking beyond IT, having a diverse internal team can be helpful in ensuring your compliance platform meets your needs holistically. For instance, each member will be able to pinpoint risks of noncompliance that might be specific to their departments.

Additional teams which may need to be involved in the procurement and purchasing process include:

  • Finance.
  • Legal.
  • IT.
  • HR.
  • Technology. 
  • Compliance.

Remember, automation often performs at its best when it’s backed by a good team. Who you determine to be a part of your internal team will determine how smooth or rocky the transition to a new compliance platform will be. Ready to transition to a new compliance platform? Schedule a demo today!