Effective compliance demands proactive efforts to identify and manage risk, systemic or otherwise, in order to protect advisors and their clients and prevent or mitigate harmful outcomes. Rules are only one component of effective compliance. Other necessary elements to raise the bar and promote a culture of advisor-focused compliance include day-to-day supervisory oversight, sales compliance reviews, a strong complaint resolution process and advisor education.
The efficient use of all these tools in the right circumstances and in balanced proportion help bolster FundEX’s standards, fair and ethical dealings with investors and confidence in advisor integrity. Building a culture of compliance that connects the interests of advisors with the interests of their clients is critical to the long term success and viability of FundEX.
FundEX compliance offers supervisory function to its advisors via their Regional Branch Manager (“RBM”), who is responsible for review and supervision of all activity conducted on behalf of FundEX clients. In keeping with the changing regulatory environment, and to ensure that our advisors are informed of all dealer policies, the FundEX RBM serves as coach, trainer and knowledgeable resource for our advisors to assist them in all compliance related matters.
Sales Compliance Reviews
Sales Compliance Reviews are completed by our team of expert Sales Compliance Examiners. FundEX’s Sales Compliance Review program meets the expectations set out in MFDA Policy 5 Branch Review Requirements, and advisors can expect to have a review biannually at a minimum. The review is an opportunity to evaluate compliance with FundEX’s policies and procedures, gain coaching and receive recommendations on effective best business practices, and identify and resolve any business conduct that may pose any undue risk to your business.
At FundEX, we believe all issues can be resolved in a fair and reasonable manner for all parties involved. The Complaints and Investigations Team handles all client complaint and regulatory investigations in the most efficient and professional manner possible. Our qualified and experienced Complaints Officers engage the advisor in the complaint handling and investigation process through open communication and transparent requests for supporting documentation. FundEX complies with both MFDA rules and regulation, specifically MFDA Policy 3, and is a Participating Firm with the Ombudsman for Banking Services and Investments (“OBSI”) for client complaints that may be escalated for third party resolution.