A reliable compliance checklist for Financial Advisors is more than a helpful tool—it’s a critical safeguard for your business.
Yet, despite understanding the importance of compliance, 37% of Advisors admit they struggle to find time for an annual review. And the risks of neglecting compliance are real: In 2024, the SEC filed 583 total enforcement actions totaling more than $8.2 billion in fines.
If you’re looking to simplify compliance and stay ahead of SEC and FINRA regulatory demands, our comprehensive compliance checklist for Financial Advisors offers a practical, step-by-step guide to help protect your business.
How Financial Advisors Can Stay Compliant in 3 Key Steps
Keeping up with evolving regulatory demands can be challenging. These three steps are designed to help you stay aligned with SEC and FINRA expectations while also creating more efficiency in your day-to-day operations:
1. Prepare for Changes in Advance
The SEC typically follows a multi-step process when introducing new regulations:
- Initial Announcement: A new rule is proposed and published.
- Consultation Period: The SEC gathers feedback and public comments.
- Final Rulemaking: Adjustments are made based on feedback before the regulation is finalized.
- Implementation Window: You’re given time to prepare your systems, tools, and policies before enforcement begins.
By staying informed throughout this process, you give yourself the opportunity to absorb what’s coming, make updates gradually, and reduce any last-minute pressure.
2. Run Regular Compliance Check-Ins
Establish a consistent cadence—weekly, monthly, or quarterly—to assess how your business tracks against current compliance expectations. During each check-in, ask yourself:
- Are there any regulatory updates that require immediate attention?
- Have recent enforcement trends revealed any new best practices you should consider adopting?
This ongoing rhythm allows you to address compliance proactively.
3. Leverage Your RIA’s Technology and Resources
Many RIAs offer technology that can help support and enhance your compliance program. For example, at RFG Advisory we provide our Advisors with:
- Compliance Scanner: An AI-powered tool that flags potential risks in your marketing content.
- Marketing Compliance Guide: A living resource that outlines regulatory considerations specific to Advisor marketing.
- Compliance Soup Webinar: A monthly internal podcast led by our Chief Compliance Officer to keep Advisors and their teams updated on the latest regulatory practices.
- Compliance Submission Software Made Easy: Built into our custom marketing engine, Pathfinder, compliance review is fully integrated into your automated workflows—so your marketing content moves seamlessly from creation to approval without slowing you down.
Related: Six Things Every Independent Advisor Should Demand From Their Home Office
The Complete Compliance Checklist for Financial Advisors
Use this checklist to break down key compliance requirements into three core areas. Each section highlights key focus areas to help your team stay aligned with current SEC and FINRA regulations.
*Note that the below list is meant for informational purposes only and is not exhaustive.
1. Sales and Marketing Compliance
Relevant regulations: SEC Marketing Rule (Rule 206(4)-1) and FINRA Rule 2210
- Support all performance claims (e.g., “Our clients achieve [XYZ]”) with proper documentation and backup.
- Disclose any partnerships or compensation arrangements with third parties, including Independent Advisor reviews.
- Use only factual, clear, and unambiguous language in all marketing communications.
- Include risk disclosures in every advertisement, highlighting all investments carry some level of risk.
- Clearly outline any real or potential conflicts of interest in public-facing content.
- Submit all marketing materials through a documented due diligence process before they are shared externally.
2. Client Agreements and Disclosures
Relevant regulations: SEC Investment Advisers Act and FINRA Rule 2111
- Keep client contracts updated and securely stored.
- Maintain a complete and accurate profile for each client, including financial goals and risk tolerance.
- Deliver and update Form ADV Part 2 annually, including details about your fees, services, and potential conflicts.
- Confirm that every client has received and acknowledged the appropriate disclosures.
3. Recordkeeping and Disclosure
Relevant regulations: SEC Rules 204-2 and 206(4)-7
- Retain all written communications with clients, including emails and messages.
- Store financial documentation such as balance sheets, income statements, and cash flow records.
- Keep a full set of compliance policies and procedures on file (and review them regularly).
- Complete an annual compliance review and update your internal documentation based on current regulatory standards.
Outsourcing Compliance: Is it Worthwhile?
As seen in the compliance checklist above, staying compliant is no small task. You’re already balancing day-to-day responsibilities and focused on serving your clients, so finding time to manage complex compliance requirements on top of that can feel overwhelming.
That’s why more Advisors are outsourcing their compliance efforts. While it’s natural to be cautious about handing over such an essential function, many who take this step report meaningful benefits, including:
- Financial savings: The cost of partnering with a third-party is generally less than the expenses accrued through complicated, internally operated compliance programs.
- Time savings: Advisors often save several hours per week by avoiding tiring manual compliance processes, freeing them to spend more time with their clients.
- Performance improvements: Nearly three-quarters of those who outsource say doing so has elevated the quality and consistency of their compliance efforts, while also giving them more time to deliver a higher level of service to clients.
Related: How to Choose a Compliance Partner That Powers Your Growth
Get Comprehensive Compliance Support With RFG Advisory
At RFG Advisory, you gain more than a platform—you gain a partner committed to your growth. Our fully integrated model is built to support growth-minded Advisors across every area of your business, including:
- Daily operations
- Talent acquisition and team support
- Marketing strategy and brand development
- A modern, scalable tech stack
- And, of course, an extensive suite of compliance services
Our approach to compliance is consultative, responsive, and built to evolve with the industry, freeing you to focus on your clients and your growth.
Curious how partnering with RFG could help you refocus your time on your business and client relationships? Outsourcing compliance is just one of the many ways RFG helps Advisors delegate non-revenue-generating activities, so they can focus their time on growth.