For many FAPs, the volume and complexity of compliance obligations has grown faster than the team to manage them. Between regulatory returns, CPD tracking, AML/CFT programme management, and keeping up with a principles-based regime that keeps evolving, it is easy for compliance to consume time that should be spent on clients.
The real cost of doing it yourself
The opportunity cost of compliance management is real. For a small FAP with five to ten advisers, the compliance workload can easily absorb fifteen to twenty hours a month — time that could be spent advising clients or growing the business. And the risk is not just time: gaps in compliance can lead to regulatory findings, complaints, and damage to reputation.
More firms are asking a simple question: what if we outsourced this work to people who do it every day?
What outsourced compliance actually looks like
A growing number of firms are engaging external compliance support that functions as a virtual compliance officer. This typically includes ongoing compliance calendar management, regulatory return preparation and lodgement, CPD tracking and verification, policy review and update, and documented compliance advice on complex issues.
The model varies — some businesses engage external support for specific functions, others for full compliance oversight. The key is that the external party becomes part of your compliance infrastructure, not a once-a-year auditor.
What to look for
If you are considering external compliance support, look for three things: experience with FAP-regulated businesses, responsiveness and accessibility, and a genuine understanding of your specific business model and challenges. The cheapest option may leave you with gaps; the most expensive may not suit a smaller operation.
Strategi’s Virtual Compliance Officer service is designed to provide ongoing support. If your business is feeling stretched, it may be worth exploring whether external compliance support would free up time and reduce risk across your compliance obligations.
Talk to us about Strategi’s Virtual Compliance Officer service