Brian Cromwell and Blair Carpenter wrote in Corporate Compliance Insights about the importance of broker-dealer firms staying compliant with anti-money laundering programs. The article offered practical tips for broker-dealers and highlighted the tension that exists between the role financial advisors play as revenue-generating profit centers and spending time on compliance training.
"Broker-dealer firms must improve communication with industrious financial advisers," Brian and Blair wrote. "Broker-dealer leadership should take a grassroots approach to educating their advisers and management about the intimidating set of federal rules and regulations."
"Education and ongoing training are key, but they must be approached in a digestible way — guiding the advisers in a manner that will have the best impact. Advisors might unintentionally disregard a message about compliance if it is included as part of a regular barrage of dos and don’ts emails. Instead, these messages should be delivered in targeted, concentrated and engaging forms to ensure the advisers retain the message," they wrote.
"It is one thing to simply point out what the rule is," they wrote. "It is another to explain why the rules matter and what the cost is of failing to comply."
You can continue reading here: After SEC Flags Compliance Failures, Broker-Dealers Can Follow These Practical Tips to Avoid Penalties
Corporate Compliance Insights (CCI) is an independent news organization designed to educate and encourage informed interaction within the global compliance, risk and InfoSec community.