The Cost of Inadequate Oversight
Failing to monitor advisor activity effectively can lead to:
- Financial Losses: Fines, restitution, and other penalties resulting from undetected violations.
- Reputational Damage: Loss of trust among clients and stakeholders when compliance issues become public.
- Operational Strain: Increased scrutiny and intervention from regulatory bodies.
These challenges underscore the importance of proactive monitoring systems that identify risks before they escalate.