The Biggest Regulatory Threat You Never Heard Of

Every CCO’s worst nightmare is the unidentified compliance problem waiting to happen.

The National Society of Compliance Professionals, the Investment Adviser Association and the CFA Institute have highlighted one of them: The Last-Mile Problem. As the IAA Newsletter’s Compliance Corner noted:

“[The last-mile problem] should be on the radar of chief compliance officers at investment advisory firms. By neglecting the last mile, investment advisory firms leave themselves susceptible to a variety of very real risks in a part of their reporting process that regulators are focused on: marketing presentations.”

What is “the last-mile problem,” anyway?

It’s what happens when your firm takes data from multiple sources and uses a hodgepodge of semi-automated and manual data entry processes to populate marketing documents and client reports.

Because that “last mile” isn’t automated, you’re vulnerable to all sorts of data errors in marketing and client material, exposing your firm to a perfect storm of regulatory, reputational and operational risks.

Assette led the industry in identifying the last-mile problem back in early 2015. To understand it—and the types of risks it poses—click on the link below for an Executive Summary of the paper we wrote with input from attorney Richard Kerr, partner at K&L Gates, and GIPS compliance pro Amy Jones, CIPM, of Guardian Performance Solutions.

Assette is also the industry leader in solving last-mile problems with cloud-based software that automatically integrates data from your accounting and analytics systems to generate marketing material and eliminate manual work.

If you’d like to learn more about how Assette can help your firm avoid last mile issues, please email paula.garcia@assette.com.

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