One of the critical solutions that is often overlooked when firms are looking to enhance efficiencies, cut costs and evaluate their disaster recovery plan is a document management system.
While there are many document management solutions available in the marketplace, there are few that are capable of meeting the regulatory needs of broker-dealers and independent registered investment advisors (RIAs).
Here are five key questions to ask before selecting a document management provider:
- Does the vendor specialize in financial services?
There are many document management providers, but very few specialize in and understand the financial services industry. Because broker-dealers and RIAs operate in such a highly regulated industry, it is essential to engage a provider that is aware of the regulations governing privacy, integrity, security and storage requirements. - Does the solution meet industry regulations?
Securities and Exchange Commission (SEC) regulations 17A-3 and 17A-4 govern the retention period and the format for storing all broker-dealer business communications. Since “Write-Once-Read-Many” (WORM) technology satisfies SEC requirements, documents are required to be stored in this format. Ensuring that your document management provider can meet these requirements is critical. - Does the solution provide workflow capabilities?
Solutions that integrate with your existing processes and provide for greater straight-through processing is where you can drive efficiencies and reduce the amount of paper involved in a given process. - Does the provider offer a hosted solution?
If you are like most other financial services firms, you would rather focus your resources on supporting your advisors and clients, not the technology behind it. Look for a document management provider that offers a hosted solution; this way, you won’t need to purchase expensive software or worry about maintaining an application. - Will the provider be in business in the long run?
Many firms evaluate document management providers on the basis of price alone, while ignoring the realities of a provider’s financial strength and backing. This is an important consideration, since it would be expensive and disruptive if you had to replace a provider that goes out of business.
iNautix® has extensive experience in providing document management and workflow solutions to the industry for both broker-dealers and independent registered investment advisors.
Whether you are looking for help in considering a new solution, replacing an existing solution or extending a paperless office solution to your advisors, contact us for more information.
With just a computer and a scanner, iNautix Document Management can help your investment professionals transform their practice into an efficient paperless office.