How to select the best regulatory reporting vendor for your business

Is your company having trouble keeping up with the rapid pace of changes in regulatory reporting? If your IT staff or department managers are spending hours scanning email alerts to track, analyze, and map compliance regulatory updates into spreadsheets, then it is likely that your answer is, well… Yes, and it’s a mess.

Managing regulatory processes manually takes a lot of time and resources which could be put toward more value-added activities. Not to mention, the risk of being caught off-guard by a vital regulatory update is far too great, when it can involve hefty fines and penalties. If this is relatable, then it is perhaps time to consider partnering with a compliance specialist consultancy.

Start With Knowing Your Specific Needs

For a company looking to change their compliance and regulatory reporting system, it might be helpful for you to first consider initiating an RFP process within your organization. Find out from stakeholders and department heads what they would want in an automated regulatory reporting process. From there, you will have a clearer vision of what your needs are and can begin searching for the right vendor.

When selecting a competent compliance partner firm for your business, it is important to evaluate your alternatives within a concrete strategy that aligns with your predetermined needs. Outlined here, are 5 tips on the kind of criteria to follow and reflect upon, when considering your partner options;

1. Determine How Much Industry Expertise They Have

The first and foremost thing you must evaluate when considering partnering with a regulatory compliance consulting firm is their domain knowledge in your industry.
Be it hospitality, construction, manufacturing, or even medical industries, understanding a compliance firm’s dominant industry of expertise in regulatory reporting will help narrow your shortlist to better suited partner options.

2. Find Out Their Focus Area(s) Of Compliance Expertise

It is critical to note that while there might be similarities in regulatory reporting within insurance, RIA and broker-dealer compliance systems, there are also some costly differences. Thus, finding a vendor with the precise kind of expertise for your needs is of utmost importance.

Additionally, a partner firm can have different areas of focus, within regulatory compliance, which too it must be evaluated against. For instance, some insurance compliance professionals focus on filing products on behalf of insurance carriers, while others focus on sales & distribution compliance.

To find a good match for your needs, pay extra attention to a vendor’s focus areas of compliance expertise and experience.

3. Establish How They Use Technology To Add Value

In today’s world, you should expect your regulatory reporting vendor to provide a compliance management platform as a basic minimum. Commonly in the form of offered software, or apps, these services typically offer time saving features. They may include a compliance monitoring plan and registers, automated task reminders and regulatory development feeds.
Such tech-backed services can help automate previously labor-intensive primary functions of a compliance department, thus making it easier for you to report and evidence your regulatory compliance.

4. Stability and Tenure of Compliance Firm’s Team

Any business looking for a regulatory reporting firm should aim to build a stable and reliable compliance partnership. Consequently, it is important to note the partner firms’ stability. That is to say, it is crucial that you know the tenure of the consultants in the firm, and the average turnover of their employees.

A high turnover could be indicative of an underlying cultural issue within a candidate firm, which could leave your company prone to compliance and/or business disruptions.

If you’re seeking a compliance partner for the first time or want to benchmark your current provider, then please let the experts at ASB Resources walk with you every step of the way. Schedule a call with one of our experts today!