|Financial Services organisations providing wealth advice face a major compliance and monitoring challenges. Audits are currently conducted by physically visiting each practice location and only cover a fraction of the advice provided by the planners.||By creating a single unified index of all relevant advice documents and associated collateral, Frisk enables the compliance team to instantly analyse 100% of relevant documents and develop search criteria to identify Key Risk Indicators to flag areas of increased concern.|
Since the Global Financial Crisis of 2007-2008, compliance has become one of the main focal points for financial services businesses in Australia. The Government and regulators expect much higher quality standards of advice, disclosure documentation and record keeping than ever before.
Though even with such emphasis, compliance for the most part remains inconsistent, extremely manual and reactive. According to one report, only 3% of all advice in Australia is monitored, most often only once a year. For larger organisations there are also still a large amount of inconsistencies and ‘blind spots’ in data access which challenges their ability to identify systemic issues and implement a solution that is scalable. Thus, the cost of compliance is skyrocketing.
The aspiration for one of our clients was to achieve 100% advice-monitoring capabilities in a real-time, automated and cost-effective manner. Audit checking would occur before advice is provided to a client and the system would apply consistent and objective rules to identify issues, trends and systemic risks. Something like this could in fact drive behavioural change and improve the quality of advice, even reducing the number of client complaints and claims.
With its flexible connectors, Frisk indexes the various stores of unstructured data, along with structured information and increases a user’s data reach significantly. This data becomes completely searchable and as it’s indexed on a cyclic basis, the searchable data remains current. Authorised staff within the organisation are now empowered to search for information within Statements of Advice, application forms, scanned PDF documents attached to e-mails and file notes saved within the practices financial planning software. Staff can locate information at sub-second speeds, rather than wasting hours as they were previously. For major banking institutions with over a thousand advisers Frisks ‘federated search’ capabilities enable a single view of all data across the country and creates a global search functionality across the enterprise. Still with sub-second results.
This federated index can also be enriched through ingestion into an analytics engine, along with any reference data the organisation may stipulate (e.g. APL or adviser accreditation information). Frisk then assists with the creation of data models (or search criteria) for all the attributes of interest. Once the data is enriched and indexed, it can be navigated to explore the interconnections within
the data. On top of this Frisk apply analytical models to test for specific items – usually compliance related questions. When Frisk identifies a potential issue, all the relevant information is communicated into the case management system for investigation as needed. This provides an evidentiary framework to the investigation.
So, what do you want to know? That every advice document contains all mandatory legal and privacy statements, word-for-word? That an adviser is recommending a non-approved product and why? And how about knowing this information the moment it is created? The list is endless…
How is compliance burdening your business and how important is it for you to have confidence that you can find what you want, when you want and act on it?