How to Keep The Compliance Dept. Happy In A High-Tech World

Wouldn't you agree adherence to what the compliance department wants makes your life so much easier?

In the past, advisor-client marketing and communication was a slow-moving process. The advisor created the paper, got it approved and sent it out to clients.

But the rules have changed - technology is moving at lightning speed. E-mail and the Internet are providing amazingly inexpensive and quick ways to keep a widely dispersed client base happy. But as regulations and supervision become tighter, if you're not minding your p's and q's, this new media can land you in trouble .

Overcoming client fears of course, advisors want to build lasting relationships with their clients. An advisor's No. 1 duty is helping clients overcome their fears and concerns.

With that in mind, all of your communication - whether it be written or oral - should create a very strong subliminal message, convey a feeling of calmness and project a confidence that you have the clients' best interests at heart But first you must find out what your clients' best interests are. Do they want security, freedom or peace of mind?

The most important thing clients desire in an advisor, after trust, is education. Experts recommend developing an automated system for giving it to them. This could include seminars, newsletters and more one-on-one meetings.

It could also take you into the realm of using a Web site as a marketing tool. But be warned everything you do in this industry has some sort of compliance impact.

And in the past couple of years, regulators in have put in place rules they feel will put an end to abuses, or perceived abuses. The industry has had to deal with changes in the way it does business.

That makes some compliance departments nervous and apprehensive about advisor Web sites. But using a site just to provide good information for your niche client is a recommended way to go. It could inform clients on how to avoid investment scams or how to budget after the death of a loved one.

The information shouldn't involve naming securities, making specific recommendations or other areas in which you could find yourself in trouble. Of course, you should be sure to get compliance's approval of your Web site and its contents.

Get templates approved also, to create a love affair with your client, create a series of standardized templates of letters or other communications that will cover issues with your top 20 clients. A simple thank-you note goes a long way. An engagement letter, meeting follow-up letter or a client satisfaction survey are just some of the tools you should have in your toolbox.

Just as important, to stay compliance-clean, have these templates approved by your compliance department in advance. Taking the time and getting approval from your compliance department does take awhile. However, in the long run, this is going to make your life a lot easier.

The battle between compliance and marketing the firms that will be successful are those that realize there is a synergy between the two, rather than antagonism. This ultimately will be good for the investor and anything that's good for the investor is bound to be successful. Just remember: happy clients don't sue.