Advisors need to prove they understand their clients' needs and the products they sell.
Financial Advisors are often dealing with the general public who have little financial expertise, so Regulators demand a higher level of care:
- Product Due Diligence: Financial Advisors have to undertake more due diligence on the products they are offering their clients, not just recommending suitable products but ensuring they perform as expected.
- Know Your Client: Understanding clients’ investment objectives is critical for any wealth manager, and these requirements have to be formally evidenced and periodically updated.
- Conflicts of Interests: When advising clients it is necessary to identify all the Financial Advisors conflicts of interests, especially commission rates, and formally manage these.
GRC-Maestro can be used as a quick and efficient GRC solution for Financial Advisors to meet their legal and regulatory requirements.
There are constant demands to drive down the cost of managing clients in a compliant manner while giving clients better service, Financial Advisors GRC challenges, include:
- Treating customers fairly: it is essential that wealth managers have a full audit trail to explain what advice clients were given, why and what authorisations they gave.
- Advisors/Salespeople: individual advisors employed by the Financial Advisory firm are both trusted to advise clients and sell financial products/services, giving rise to an inherent conflict of interests.
GRC-Maestro offers Financial Advisors the ability to implement GRC controls across their operations covering their product selection, advisors and clients.