Notes

Investment advisers, corporate lawyers, corporate compliance consultants and investment adviser compliance protection consultants are all involved in some way with investment adviser compliance. This is because they all have to work towards the same objectives and outcomes and if they don't all work together to achieve these objectives then they all lose. Investment advisers can be seen as corporate attorneys or accountants who specialise in making sure that a client's investment behaviour is sustainable over time and that the investment adviser complies with their UK financial regulation. They can also be seen as corporate compliance officers who look after the implementation of investment adviser regulations and who ensure that investment advisers are following the rules and regulations regarding the conduct of their business.
Investment advisers and compliance officers work closely together on a number of different issues to ensure that investment advisers and ria registration services providers operate to high standards. Investment advisers have to make sure that they keep their client's interests at heart and ensure that the investment adviser's compliance protection acts are implemented appropriately. This can often include making sure that investment advisers provide suitable investment adviser compliance protection advice so that the client has a clear view of what their rights are and what the likely consequences are if they breach their obligations. Compliance officers have to make sure that the investment adviser complies with their UK financial regulation by ensuring that the adviser provides appropriate disclosure to their client about any investment activity in order to maintain compliance with the various rules and regulations governing investment. It is imperative that these regulatory authorities to protect the interests of both the investment adviser and the client, and all too often these regulatory authorities fail to do this adequately.

Corporate governance and compliance officers have to make sure that rules and regulations surrounding the investment adviser are being adhered to and that the investment adviser and their registration organisation both operate within the law. There are often times where the investment adviser has to provide evidence to the regulatory authority as to how the investment adviser has complied with their regulations and rules, and it can be quite time consuming having to go through this process for a client. The investment adviser also needs to make sure that they are not under-reporting to their clients and in some instances the investment adviser may need to provide documentary evidence as to the costs and other compliance parameters that have been applied to their business. All this can cause unnecessary delays and costs for their clients.

Investment advisers must make sure that they provide their client with appropriate information and this can often be very time consuming and difficult for them to do. All too often the investment adviser fails to fully comply with their client's duty of care, and because of this they end up being reprimanded by their regulatory authority or reprimanded by the Information commissioner who will fine the investment adviser. All too often investment advisers will be required to pay heavy penalties which may mean a loss of clients and a further ding on the reputation of the investment adviser. It is these sorts of scenarios, which cause the majority of the problems for the investment adviser and their compliance officers.

However, compliance officers and the regulatory bodies need to be careful here as there are many occasions when an investment adviser has provided incorrect advice which has in turn resulted in a loss for a client. This may have been due to the investment adviser compliance officer making an error in judgement or even a lack of understanding of the requirements that they must uphold to remain on good standing. If compliance consulting services fails to ensure that they provide the correct advice then they could face a penalty or even have their license suspended. There are some professional bodies which do have certain guidelines that they require their investment advisers to follow, and if they are breached the adviser may find that their registration and business registration will be suspended until rectified.

However, there are also other rules and regulations which specifically state how the investment adviser and their compliance officers should deal with clients. For example they must not breach the duty of care which they must uphold to every client. They should also only discuss matters that relate to the investment adviser's professional reputation with their regulatory body. Finally, they must only seek advice from their clients in the proper context in order to ensure that the advice they are providing is in the best interest of the client. It is always better for a client to know exactly what they are getting into before committing to any investment adviser.
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