STP Investment Services has introduced STP ComplianceAdvisor, a new practice aimed at providing comprehensive compliance solutions for investment firms. This expansion leverages STP’s existing expertise in technology-enabled investment servicing to address the growing demand for compliance assistance among its investment advisory clients.
STP ComplianceAdvisor also expands the company’s technological capabilities. The new team will leverage STP’s proprietary platforms, including BluePrint – a cloud-native advisor solution that unifies data from various sources—and WealthSite – a Family Office and Wealth Advisory Fintech Solution acquired in 2022 – to optimize compliance processes.
The decision to launch ComplianceAdvisor emerged from client requests, such as establishing compliance policies, conducting testing, and managing regulatory filings. Recognizing an opportunity to create synergies between its existing services and compliance needs, STP decided to integrate compliance solutions directly into its offerings.“STP’s advisory clients were seeking referrals for compliance services,” says Dan Houlihan, Chief Executive Officer of STP Investment Services. “We recognized that by providing compliance services ourselves, we could offer a complementary solution to the middle office, fund administration, and wealth services we already provide. This integration allows us to efficiently and accurately prepare filings without requiring client involvement in the data-gathering process.”
By offering compliance services in-house, STP can streamline processes that traditionally required coordination between multiple vendors. For instance, third-party compliance firms often need data from clients to prepare regulatory filings and Clients typically source this data from STP, their operational partner. With ComplianceAdvisor, STP eliminates this extra step, enhancing efficiency and accuracy.
STP ComplianceAdvisor provides a range of services, including:
- Regulatory Interpretation: Tailoring regulatory insights to a firm’s specific business model.
- Customized Policies: Developing compliance policies and procedures that meet current expectations without unnecessary complexity.
- Employee Training: Educating staff on their compliance obligations based on their roles.
- Regulatory Filings Assistance: Helping prepare and submit necessary documents like Forms ADV, CRS, 13 filings, PF, Blue Sky filings, and U4 filings.
- Annual Compliance Reviews: Conducting reviews with reports to meet Compliance Rule (Rule 206(4)-7) obligations.
- Mock Examinations: Simulating regulatory audits to prepare firms for actual examinations.
- Compliance Reviews Support: Assisting with reviews of marketing materials, personal trading activities, political contributions, and electronic communications.
- Adviser Registration Guidance: Aiding in firm-level and personnel registrations with the SEC and state regulators.
Technology-Enabled Compliance Solutions
“When our compliance team works with clients who also use our other services, we can utilize our technology platforms to enhance efficiency,” Houlihan explained. “We’re also exploring ways to use BluePrint to harmonize internal compliance processes and provide a consistent user experience for clients engaging with multiple STP services.”
This tech-enabled approach allows for a more integrated service offering, combining business and technology skill sets. By embedding compliance protocols into existing operational platforms, STP aims to make compliance a seamless part of daily operations for their clients.
Enhanced Value for Clients
The integration of compliance services with operational and administrative functions offers significant value to clients, particularly in areas like advertising and performance reporting. STP’s middle office and fund administration services provide performance calculations and analytics, while the compliance unit ensures that any advertised performance meets regulatory requirements.
“This is a value-add for all of our clients, including those with highly customized performance reporting needs,” noted Houlihan. “STP produces a level of reporting that our competitors cannot provide, and by integrating compliance services, we enhance that offering even further.”
By aligning compliance with operational strategies, STP provides comprehensive oversight across clients’ businesses. This integrated approach not only bolsters compliance practices but also creates efficiencies and builds trust among stakeholders.
Industry Implications
As regulatory environments become more intricate, the need for integrated compliance solutions becomes more urgent. STP ComplianceAdvisor, led by a team of industry veterans with over 20 years of experience in securities compliance, aims to fill this gap.
“Compliance is no longer a standalone function; it’s intertwined with every aspect of a firm’s operations,” Houlihan said. “Our multidisciplinary approach allows us to be a proactive partner in the solutions we provide, helping clients navigate SEC regulatory guidance effectively.”
Looking Ahead
The launch of ComplianceAdvisor represents a strategic move for STP Investment Services, positioning the company to meet the evolving needs of investment firms in a complex regulatory landscape. By combining technological innovation with comprehensive compliance services, STP aims to set a new standard in integrated investment operations.
Subscribe to our newsletter
