RegVerse

🔍 Is Your Form ADV Misleading? Time to Update Your Disclosures! Advisors, the SEC has long warned that using "may" in disclosures is misleading if the issue is already occurring. 🚫 2️⃣0️⃣1️⃣6️⃣ Take the Robare Group case in 2016: they disclosed they "may" receive compensation but were already receiving it, leading to a conflict of interest. 2️⃣0️⃣1️⃣9️⃣ The SEC's 2019 guidance is clear: "may" isn't sufficient when a conflict exists. Specify when and for whom these conflicts apply. Misleading disclosures prevent clients from giving informed consent. Review your Form ADV at least annually. Update those "may" disclosures to "are" to reflect current practices. 💼 RegVerse’s AI can monitor and update your ADV, ensuring compliance and transparency. 👉🏻 Contact us to stay ahead - https://lnkd.in/ds9Rigic #compliancemanagement #regtech #fintech

Alert: 🚨 ‼️⚠️ Navigating the Supreme Court’s SEC Ruling with Enhanced Compliance Systems The recent Supreme Court decision mandating federal court trials for SEC fraud cases highlights the critical need for robust compliance and record-keeping systems within financial firms. This shift underscores the importance of meticulous documentation and strong legal preparation. Surge Ventures offers an integrated platform mesh approach designed to address these challenges: 1. Enhanced System of Record: Automating the tracking of compliance activities ensures comprehensive documentation, crucial for legal proceedings. 2. Real-Time Monitoring: Continuous oversight reduces compliance lapses, keeping firms ahead of regulatory changes. 3. Legal Team Support: Detailed, data-driven reports equip legal teams to effectively present cases in court. 4. Streamlined Processes: Integration of compliance functions simplifies management, enhancing efficiency and reducing costs. 5. Proactive Risk Management: Predictive analytics identify and mitigate potential compliance gaps. By adopting this approach, financial firms can ensure better compliance, efficient legal defense, and effective risk management in the evolving regulatory landscape. References: • Supreme Court ruling impacts on SEC enforcement: ABC News • Analysis of regulatory compliance and risk management: Press Herald

R‼️🚨Data: The Superpower Behind Smart Workflows and Financial Compliance! In today’s digital age, data is the lifeblood of innovation and efficiency. It’s the core of smart workflows, data management platforms, enterprise LLMs, and robust data security measures. Nowhere is this more evident than in financial services compliance. Smart Workflows and Data Integration Smart workflows drive efficiency and accuracy through automation and intelligent decision-making. A robust data management and integration platform ensures data flows seamlessly, breaking down silos and enabling real-time insights. This is crucial for financial services firms, where timely and accurate data can make the difference between compliance and costly violations. Enterprise LLMs: Powering Intelligent Automation LLMs are transforming enterprise solutions. These AI-driven models rely on vast amounts of high-quality data. In financial services, LLMs can automate regulatory reporting, risk assessment, and customer service, maintaining compliance with stringent standards. Their success lies in the data they’re trained on and the integration into existing workflows. Data Security: Protecting the Crown Jewels With increasing data reliance, security becomes paramount. Financial services firms handle sensitive information that must be protected. A comprehensive data security strategy safeguards against breaches and ensures compliance with regulations like GDPR, CCPA, and the new SEC rules. Advanced security measures are essential to maintain data integrity and confidentiality. Compliance: A Killer Use Case for Data-Driven Architectures Compliance in financial services showcases the value of data-driven architectures. Regulatory requirements demand a proactive compliance management approach. Data-driven solutions automate regulatory tracking, streamline reporting, and ensure policies are up-to-date. Leveraging data helps financial firms meet compliance requirements, enhancing operational efficiency and reducing risk. At Surge Ventures, we saw that unified data-driven architectures are positioned to replace legacy forms driven systems, data silos and spreadsheets, so we decided to invest our time, energy and dollars behind it. Our portfolio companies are at the forefront of this transformation. Companies like RegVerse, Kovair Software and Kitecyber are helping financial services firms harness the power of data to drive innovation and compliance. #DataSuperpower #FinancialCompliance #SmartWorkflows #DataManagement #EnterpriseLLM #DataSecurity #RegVerse #Kovair #KiteCyber #SurgeVentures #Innovation #FinTech #ComplianceTech #DataDriven

From Serengeti to Silicon Valley: The Great Compliance Migration This summer, while on a family vacation to the Masai Mara and Serengeti, I found unexpected inspiration for our industry’s compliance journey. Imagine the great African migration: thousands of wildebeest, zebras, and gazelles on a journey across the Serengeti. Now, picture your financial firm’s CCO and team in a similar epic migration, moving from outdated legacy systems and manual processes to an AI-powered, human-guided compliance platform. In the Serengeti, wildebeest face treacherous rivers teeming with crocodiles. For our CCOs, the rivers are a flood of regulations, and the crocodiles are the constant risk of non-compliance and hefty fines. Just as the wildebeest follow the rain to greener pastures, these brave CCOs are drawn to the promise of a more efficient, accurate, and reliable compliance system. The vigilant zebras represent compliance officers who constantly scan for threats and opportunities. Enter AI: the intuitive technology that processes vast amounts of data faster than any human. Yet, like zebras relying on their herds, our compliance heroes trust human expertise to interpret AI insights and make informed decisions. Gazelles, agile and adaptive, mirror younger compliance team members, quick to embrace new technology. They dart through challenges with ease, bridging the gap between traditional methods and futuristic solutions. Despite moments of chaos and uncertainty, the migration finds its way. Similarly, financial firms, guided by AI and supported by human intelligence, will achieve seamless, proactive compliance. Here’s to the CCOs and their teams, bravely crossing the plains of legacy systems to embrace the future of AI-driven compliance. The journey may be challenging, but the rewards are worth the trek. 🌿 #Compliance #AI #FinancialServices #Innovation #Leadership #RegTech RegVerse

‼️ WARNING ⚠️ : What Financial Firms Should Look For in Their Next Compliance AI tech Vendor In the field of compliance technology for financial services, many young pretenders (upstart vendors) claim to leverage AI but often fall short, resorting to manual processes and/or tools like ChatGPT. Choosing a compliance vendor that claims to use AI but relies on manual processes is like buying a self-driving car that requires a hidden driver. It defeats the purpose of automation and innovation, leaving you with the same old problems under a shiny new facade. Or Worse, if the SEC were to ask you to list all services that use ChatGPT and how you vet them for data security and privacy, you would be caught in an unsavory spot. Here are essential 8 criteria to ensure you make an informed choice: 1. Regulatory Expertise: Look for vendors with demonstrable knowledge of regulations and enforcement actions. Their understanding should be deep and comprehensive. 2. Proven Track Record: Choose vendors that have a solid history, with at least 10+ years of experience in selling compliance products in the financial space. Longevity often equates to reliability and expertise. 3.Technical Pedigree: Don't just take their word for it—examine their technology or hire an expert to do so. A deep technical understanding and a proven pedigree, especially in AI, are crucial. 4. Data Security and Privacy: Ensure the vendor has a thorough understanding of data security and privacy practices. Your data is your most valuable asset, and its protection is non-negotiable. 5. Regulatory Collaboration: Vendors who have worked with regulators like the SEC or FINRA are likely to be more adept at navigating compliance requirements and staying ahead of regulatory changes. 6. Financial Stability: Conduct financial due diligence to ensure the vendor will be around in a few years. A vendor's stability is as important as their technology. 7. Seamless Data Migration: The ability to help with data migration from your current system, even if it's as basic as .xls files, is vital. Books and records are a key requirement, and transitioning smoothly is critical. 8. Comprehensive Product Offering: Look for a vendor that offers a consolidated, best-of-breed platform rather than just five capabilities in one place. A comprehensive product suite can address all your compliance needs seamlessly and efficiently. Choosing the wrong compliance vendor can be disastrous. Make sure your next partner not only meets these criteria but exceeds them. Protect your firm, your clients, and your reputation by aligning with the best in the industry. #wealthmanagement #finservAi #compliance #regrech Wealth Solutions Report Surge Ventures RegVerse Kovair Software

🧰 Mastering Form ADV: Essential Tips and a Game-Changing Tool Navigating the complexities of Form ADV can be daunting. Here are some practical tips to help you stay on track and avoid pitfalls: 🔹 Triple-Check: Review your form multiple times. 🔹 Keep It Fresh: Regularly update all information. 🔹 Be Honest: Disclose everything, even minor details. 🔹 Stay Clear: Write your brochure simply. 🔹 Seek Help: Consult a compliance professional when in doubt. Why is this important❓ Errors in Form ADV can lead to fines, increased scrutiny, and damage to your reputation. 👍 RegVerse simplifies the process of filling out Form ADV using AI technology. It’s like having a compliance expert at your fingertips, without the hassle. Embrace accuracy and bid farewell to stress! 👉 Get your demo today - https://lnkd.in/ds9Rigic #compliancemanagement #regtech #fintech

📢 Attention, Compliance Teams: Uncover the Hidden Costs of Manual Regulations Management ☹️ Relying on manual processes can lead to numerous challenges, including human errors, data inconsistencies, and regulatory non-compliance. Manually tracking and updating compliance mandates is time-consuming, labor-intensive, and prone to mistakes. These practices drain valuable resources and increase the risk of regulatory breaches. 📉 Additionally, the manual effort involved in managing documents, spreadsheets, and information sources can severely impact employee productivity. This means less time for strategic initiatives and growth-oriented activities. 🚀 Fortunately, modern technology provides solutions to streamline and automate these processes. Automation makes compliance procedures more efficient, accurate, and manageable. 🎯 Contact us today https://lnkd.in/ds9Rigic #compliance #regulations #wealthmanagement

The SEC is putting a spotlight on data governance and client privacy for 2024. Their mission is to promote compliance, prevent fraud, monitor risk, and inform policy—all things that impact how firms handle data. With the SEC now scrutinizing information security and operational resiliency, it's time to make sure your firm’s policies and procedures are rock solid. In this AdvisorHub Roundtable hosted by Sid Yenamandra of Surge Ventures, our very own Richard Thoeny, EVP of Product Strategy at PreciseFP and VP at Docupace, breaks it down, explaining how information security and platform resiliency are our bread and butter. “We are not only fully transparent with what we do to protect advisor and investor data and how we do it, but we adhere to painstakingly laborious policies and procedures behind the scenes each and every day to ensure we stay true to this core tenet.”   Is your firm ready for the SEC’s 2024 exam priorities? It’s crucial to have strong data governance and privacy practices in place. https://lnkd.in/ga2iDUA7 #DataGovernance #SEC #FinancialServices #WealthManagement #CyberSecurity #Compliance #RiskManagement

😧 Is Your Firm Prepared to Avoid Disruption? With natural disasters, cybersecurity risks, and infrastructure failures on the rise, how can an RIA ensure business continuity for their organization and clients? 🎯 Avery by RegVerse offers a solution. Our Regulatory Co-Pilot provides 24/7 personalized regulatory and enforcement action insights to minimize non-compliance risks, saving time and money for SEC, FINRA, and State-Board regulated firms. Key Steps for 2024: 🔵 Disruption Considerations: Enhance your BCP to address widespread events and key personnel loss. 🔵 Alternative Locations: Ensure off-site recovery locations are ready. 🔵 Vendor Relationships: Evaluate IT infrastructure and perform risk analysis. 🔵 Telecommunications: Establish robust backup systems. 🔵 Communication Plans: Develop protocols for communicating during disruptions. 🔵 Transition Plan: Identify funding sources and create seamless transition plans. 🔵 Regulatory Compliance: Regularly update your BCP. 🔵 Review & Testing: Test and remediate your BCP regularly. Are your systems ready to boost your regulatory intelligence and business continuity? 👉 Visit our website to discover more! https://lnkd.in/dWEif632 #Compliance #RiskManagement #RIA

Real-World Impact of Compliance Failures on Smaller Financial Advisory Firms (P.S. there are many other failures beyond text and communications archiving which gets a lot of press) In 2023, the SEC filed 784 enforcement actions, with many targeting smaller firms for compliance failures [oai_citation:1,SEC.gov | SEC Announces Enforcement Results for Fiscal Year 2023](https://lnkd.in/g54HQYKA). Here are the top five compliance failures and strategies to mitigate these risks: 1. Inadequate Recordkeeping: SEC fines for recordkeeping failures totaled $79M in 2023 [oai_citation:2,SEC.gov | SEC Announces Enforcement Results for Fiscal Year 2023](https://lnkd.in/gUeKvs3c) [oai_citation:3,SEC.gov | SEC Charges 10 Firms with Widespread Recordkeeping Failures](https://lnkd.in/gbbSb49A). Automating recordkeeping can ensure compliance. 2. Failure to File Timely Reports: Late filings of Form ADV and CRS led to several penalties [oai_citation:4,SEC.gov | SEC Announces Enforcement Results for Fiscal Year 2023](https://lnkd.in/g54HQYKA). Automating report submissions can prevent delays. 3. Insufficient Advanced Cybersecurity Measures: Data breaches and weak cybersecurity protocols result in severe penalties [oai_citation:5,SEC.gov | SEC Charges HSBC and Scotia Capital with Widespread Recordkeeping Failures](https://lnkd.in/gaFgkNB7). Implementing robust cybersecurity measures is crucial. 4. Inaccurate Marketing and Advertising: Nine advisers were fined $850K for marketing rule violations [oai_citation:6,SEC.gov | SEC Announces Enforcement Results for Fiscal Year 2023](https://lnkd.in/g54HQYKA). Ensuring all marketing materials comply with regulations is essential. 5. Lack of Proper Supervision and Training: Many firms were penalized for inadequate supervision [oai_citation:7,SEC.gov | SEC Announces Enforcement Results for Fiscal Year 2023](https://lnkd.in/gUeKvs3c). Investing in employee training and supervision can mitigate risks. Smaller firms must prioritize these areas to avoid costly penalties and enhance their compliance efforts. Reach out to any of our portco's doing neat things with cutting edge compliance software and services. RegVerse, Kovair Software, Kitecyber