Wealth management compliance consultancy Essential Edge announced it is partnering with regtech firm RegEd to provide an end-to-end outsourced solution for conducting branch exams.
Essential Edge consultants will provide subject matter expertise to complement RegEd’s inspections management offerings for clients that engage both service providers. The Essential Edge team can perform remote exams for firms participating in FINRA’s Remote Inspections Pilot Program. For firms that opted out of the FINRA program, Essential Edge will conduct on-site audits, as well as pre- and post-audits, through visiting branches.
“The industry has recognized that maintaining an internal branch exam function can be expensive and inefficient for firms, especially now that FINRA has expanded the definition of what constitutes a branch office to include non-sales associated persons,” said Essential Edge Co-Owner and Managing Partner Sander Ressler.
He continued, “By leveraging RegEd technology and outsourcing branch inspections to our highly experienced and skilled licensed individuals, broker-dealers likely save money and can reallocate their limited resources to more proactive, growth-oriented activities.”
The firms’ branch audit solution is designed for larger broker-dealers, asset managers and wirehouses with offices in multiple locations. Santa Fe, New Mexico-based Essential Edge has over 25 compliance professionals in multiple locations across the country.
“RegEd conducted a survey of financial services firms and found that the greatest challenges around branch exam programs were adding and retaining branch examiners, along with scheduling and travel costs,” said Adam Schaub, VP of Product Management for RegEd. “As the leading provider of these services, Essential Edge can help our clients resolve those challenges and maintain a level of consistency in their examination programs while leveraging our best-of-breed branch audit solution.”
RegEd has more than 200 enterprise clients.
Michael Madden, Contributing Editor and Research Analyst at Wealth Solutions Report, can be reached at michael.madden@wealthsolutionsreport.com.
