With new regulations and shifting consumer demands, wealth management providers have renewed interest in aligning their priorities with their customers and clearly conveying the value they deliver. As a result, many advisors are shaking up their fee structures to become more efficient, keep up with changing regulations, and maintain profitability in uncertain markets.

Understanding the True Cost of Compliance

Managing regulatory risk is more than just a cost of doing business and it continues to grow as a strategic advantage for firms who do it well. Most high-performing firms dedicate significant time and energy protecting reputational goodwill, ensuring the best interests of their clients and securely storing customer data.

As new regulations are introduced into the wealth management industry, firms must rethink how they look at the cost of compliance. This includes setting goals and strategies around the ROI needed to outpace the costs associated with specific service types. In a recent survey by Envestnet, 44% of advisors cited regulatory requirements as the number one driver for increasing costs and reducing access to quality advice.