Folding marketing and communications compliance into an overall compliance program poses special challenges for financial innovators. In fact, the current state of regulations does not offer much assistance in addressing these challenges.
Digital broker dealers are starting to face significant market pressures to revisit their business model. Large incumbent platforms, already featuring a wide range of investment options from equities to ETFs to alternative assets, have joined more recent entrants in offering commission-free trading.
Fintechs with unique digital business models face equally unique compliance challenges, everything from crafting a regulatory strategy to planning to making partnership and technology decisions.
With all of the industry buzz around regtech, it’s no surprise that clients increasingly ask questions about its potential and how it can support their compliance program.
Clearing firms provide the underlying glue to transactions between end users of brokerage platforms and the securities markets. But not every type of glue is well-suited to adhering every type of material. Broker dealers need to pay special attention to choosing a clearing firm, as it represents the most important component of its operational and technology stack.