1. 1
SHARED SERVICES CREDENTIAL:
LARGE INDEPENDENT BROKER DEALER
Issues
• Multiple emerging regulatory requirements having significant impacts on the Onshore cost of Compliance
• Several citations from regulators pointed to weaknesses in the overall Governance, Risk and Compliance
(GRC) framework and particularly in such functional areas as Surveillance, Supervision, New Client
Onboarding and Registrations, Advisor Review, Branch Exams, Market and Regulatory Review, etc.
• Enterprise GRC functions operated in a vertically integrated ‘silo’ environment with overall legacy state
operating model implemented less effectively, as it was hindered by gaps and duplicative process
designs, outdated controls, inadequate system capabilities, lack of data integrity, quality concerns, etc.
Journey
• The client decided to launch a ‘Pilot’ program to build the case for potential enterprise wide optimization
• Designed and utilized Adjusted Evaluation Tool to assess 108 processes in 8 Business Units and
recommends 24 tasks for transitioning into Offshore and 5 tasks into Onshore Shared Services platforms
• Managed documentation of current and designed future state, constructed the logical centralized operating
model, identified gaps and integrated them into a consistent roadmap for implementation, ran UAT,
designed automatic tracking of KPIs and implemented robust escalation and early warning reporting.
Outcomes
• Shared Services introduced ability to identify and withdraw duplicative due diligence requests prior to new
client onboarding and registrations, and to reuse and recycle data in reports during approved aging term
• Reduced operational costs as a result of BPO and enhanced ability to retain top onshore talent.
Regulatory risk in sales practices mitigated by creating shared functional visibility to reduce silos’ effect
• Pilot service “Centralized Due Diligence Reporting” increased volumes of recycled Key Data Elements.
Next Phase Shared Services candidates: Outside Business Activities, Consolidated Statements,
Compensation Plans, Supervisory Conflicts, Private Securities Transactions, Risk Ratings Monitoring.
Client context: The client is a large independent broker dealer, headquartered in Boston with significant presence in
Charlotte and San Diego. The client is a top RIA custodian and engages in providing independent consulting services to
wealth and investment management. The business operates in all of the United States and has more than 14,000 financial
advisors and approximately 7,000 employees.