Assured Support explores five tips to help financial advisers embed compliance into the heart of their business ahead of 2025.
With many practices treating compliance as a once-a-year task, Assured Support consultant Zoe Graham has unpacked how practices can stay compliant all year round.
“By embedding it into your operations and tracking it consistently, you’ll avoid surprises, reduce stress, and be ready for anything,” she remarked.
Graham previously underlined why proactive compliance risk management has become both a “regulatory necessity” and a “cornerstone of ethical excellence”.
1. Regularly check compliance with your AFSL
Advisers are encouraged to continually check if they are meeting the conditions of their Australian Financial Services Licensee (AFSL).
“Your AFSL isn’t just a box to tick – it’s the backbone of your business. You can’t operate without it, and failing to meet its conditions could mean serious trouble.”
This can include monthly, quarterly, half-yearly and annual compliance checks.
2. Prioritise client files
With client files being one of the first things that regulators look for, Graham cautioned that missing documents or incomplete fact finds can cause trouble later down the line.
Harnessing machine learning tools can assist advisers with identifying inconsistent fact-find documents, highlighting missing data and automating repetitive checks, she added.
However, Assured Support’s managing director Sean Graham reminded firms to balance automation with human judgement.
He explained: “In our view, it’s essential to strike the right balance between automation and human oversight to ensure that technology enhances, rather than replaces, your compliance team’s capabilities.”
3. Improve complaint handling process
“No one likes dealing with complaints, but ignoring them is worse. ASIC expects licensees to have a strong complaint-handling process, and falling short here can quickly land you in hot water,” the consultant commented.
Practices are recommended to document all complaints thoroughly, resolve complaints within required time frames, and take note of recurring issues to identify systemic problems.
4. Follow staff training and competency
The corporate regulator also expects advisers and staff to stay competent through ongoing education, rather than purely relying on initial qualifications, Graham explained.
“A well-trained team reduces your risk of compliance breaches and builds client confidence in your business,” he said.
This means retaining detailed records of training sessions and certifications, organising regular professional development training, and using competency assessments to find knowledge gaps.
5. Update your compliance plan
Finally, an effective compliance plan needs to reflect the business’s current operations, which includes reviewing the plan against current regulations and aligning it with the practice’s operations.
“The regulatory environment is constantly evolving, and organisations must be prepared to adapt quickly to new rules, emerging risks, and shifting market dynamics. Without adaptability, compliance frameworks can become rigid and outdated, leaving your organisation exposed to unnecessary risks or inefficiencies,” the managing director said.
“Embracing adaptability means not only reacting to changes but proactively anticipating them.”
