Regulators don’t like sloppy operations. Inadequate internal processes lead to performance-reporting mistakes in marketing and sales documents. And a pattern of operational mistakes invites regulatory scrutiny.
No CCO wants that.
Operational controls often break down during the last mile, when data goes from accounting and analytics systems into sales and marketing materials. Here are just a few examples of common performance-related operational bloopers:
Copying return numbers into the wrong return period column
It doesn’t take much to copy a 3−year composite return number from a spreadsheet into the 5−year return column in a presentation or manager database.
Failing to include GIPS disclosures in sales materials
When it comes to GIPS errors, the offending firm can be required to redistribute the corrected CP slide to current and prospective clients who received the original. Trust us when we say that no CCO wants to see that happen!
Using an existing marketing pitch book as the template for a different strategy presentation
Let’s say your marketing staff uses their Small-Cap Core pitch book as the template for a Small-Cap Growth presentation. It’s easy to copy-and-paste Small-Cap Growth returns into the existing document but forget to change the benchmark name — and/or data — from the original Russell 2000 Index to the correct Russell 2000 Growth Index.
Assette leads the industry in identifying last-mile problems like these—an idea that the NSCP, IAA and the CFA Institute have highlighted. Click below to read the Executive Summary of our paper discussing regulatory risks in the last mile and recommended 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 click here.