Supervision Services for Fintechs
InnReg supports fintechs by helping them establish clear processes for monitoring staff, vendors, and activity across their platform. Whether you're a broker-dealer, RIA, lender, or crypto platform, we help define clear responsibilities, review activities, and document your oversight, so you can keep moving while mitigating regulatory risks.
What Supervision Means in Fintech Compliance
Supervision compliance is about how your company monitors and reviews day-to-day activities to stay aligned with regulations. It includes tracking what your team does, how vendors operate, and whether internal procedures are followed.
If you're a regulated fintech, whether you're handling trades, giving advice, moving money, or offering lending products, regulators expect you to have a clear system for oversight. This involves assigning responsibility, establishing review processes, and monitoring issues and decisions.
Supervision failures are one of the most common findings in regulatory exams and enforcement actions
Regulators expect you to show how supervision works in practice, not just what’s written in your policies
Clear supervision helps prevent gaps in oversight when roles shift, teams grow, or new products launch
If an issue comes up, regulators will ask who was responsible and what steps were taken
A strong supervision system supports faster scaling by making compliance tasks repeatable and easier to manage
Supervising third-party vendors is your responsibility, too, especially if they handle customer interactions or regulated functions
What Regulators Expect From Your Supervision Program
Regulators don’t just want written procedures; they want proof that supervision actually happens. If you’re registered with the SEC, FINRA, or state regulators, they expect to see a functioning system that covers how you oversee staff, monitor risk, and stay on top of compliance issues.
Common Supervision Mistakes in Fintech Compliance
Supervision tasks are assigned, but not followed up on in practice
Review processes happen less often than your procedures say they should
Nobody tracks whether required approvals or sign-offs are happening
Vendor oversight isn’t documented, even when third parties handle regulated work
Responsibilities are vague or shared across too many roles
The firm adds new features or business lines, but doesn’t update supervision controls
The same person is responsible for both performing and supervising a task, with no independent oversight
New communication channels, like chat apps or social features, aren’t included in supervision reviews
Examples of Supervision Gaps in Fintech
Supervision issues aren’t always the result of ignoring compliance. Sometimes, it’s about growing too quickly, relying too heavily on automation, or failing to keep pace with changes in your business. Here are a few situations where fintechs ran into problems that could have been avoided with an improved approach.
Scenario 1
The Issue: A cryptocurrency trading platform stated that it reviews trade activity daily. In practice, reviewing was happening weekly with no documentation.
What Happened: During an exam, FINRA flagged the firm for failure to supervise high-risk trades.
How We’d Approach It: At InnReg, we would align the review schedule with capacity, assign it to a qualified principal, and set up a tracking system so reviews are logged.
Scenario 2
The issue: A robo-advisor added new investment products but didn’t update supervision procedures.
What Happened: The firm missed compliance issues tied to the new product features.
How We’d Approach It: At InnReg, we’d update the supervision plan to reflect the new activity and train the compliance team to review those areas regularly.
Scenario 3
The Issue: A lending startup outsourced collections but didn’t supervise the vendor.
What Happened: Aggressive practices led to complaints, and a regulator asked for vendor oversight documentation that the firm didn’t have.
How We’d Approach It: Our experts at InnReg would approach it by adding vendor monitoring steps to the supervision policy and creating a review log showing how performance is tracked.
Scenario 4
The issue: An investment advisor updated its product lineup, but the supervision policy still referred to legacy offerings.
Result: Internal reviews were focused on the wrong areas and missed high-risk changes.
How We’d Handle It: We’d rewrite the supervision procedures to match current operations and work with the product and compliance teams to keep them in sync.
How InnReg Manages Supervision Compliance for Fintechs
InnReg works with fintechs to make supervision part of how the business actually runs. Whether you need help building your program from scratch or improving what’s already in place, we bring the structure, tools, and expertise to support your day-to-day oversight.
Latest Content
Frequently Asked Questions
Let’s Talk About Your Supervision Program
Supervision compliance doesn’t always break in obvious ways. Here are signs you might need to revisit your program:
You’re launching new products, but haven’t updated your supervision controls
Your last exam flagged issues tied to failure to supervise
Vendors are handling key functions, but there’s no oversight process in place
Reviews are happening inconsistently
You don’t have documentation to show how supervision works day to day
