LOGiQ3 works with financial institutions (FIs) on engagements to improve and ultimately optimize distribution strategies and processes. Where outsourcing or developing a supporting service business becomes an obvious solution to improve a common process within the distribution chain, we work with the key industry participants to pursue and build these businesses.
Deposit Broker Audit Service
LOGiQ3 is currently working with a key group of financial institutions to implement an industry standard Deposit Broker audit service business.
Taking the feedback and input from financial institutions (FIs), LOGiQ3 is developing an industry standard service model for deposit broker audits. LOGiQ3 is building out this service business with industry participation.
Deposit Brokers will complete a pre-audit questionnaire via a professional practice web page that includes all pertinent information such as practice demographics, FI contract listing, current operations and sales practice. This page serves as a foundation for the Deposit Broker National Database, as well as a Know Your Broker (KYB) page for all FIs with whom the deposit broker is contracted. Rather than individual audits being conducted by the multiple FIs, deposit brokers will be audited by a professional audit team from LOGiQ3 which shares the results with the pertinent FI. The audit will provide measurable and objective results, allowing FIs to determine continuing suitability for contract.
The on-site audit will meet identified objectives of the regulator and the risk committees of the participating FIs.
Deposit brokers benefit from a single source of backed up and secured information available to them to ensure best practices management of their businesses. It reduces the current and likely increasing burden of dealing with multiple FIs for the submission and maintenance of relevant documentation and verification of compliant practices.
The business objectives of this industry standard initiative are:
- Initiate field auditing of Brokers to better assess their suitability and compliance with regulations, legislation and the contracts under which they work
- Reduce economic and reputational risk to FIs and Brokers and to meet regulatory expectations for each FI to "Know the Broker".
- Reduce costs to FIs through scale, better efficiencies, reduced duplication and better processes in auditing and follow up
- Increase awareness of Brokers as to what is required to be in compliance with regulations, legislation and the contractual obligations with each FI.
- Ensure participants maintain the status of a well regulated industry which serves the consumer well and is not in need of additional regulation or oversight
- Take positive action towards assuring the investing public that their Deposit Broker is in compliance with federal and provincial regulations and is adhering to high standards and practices
For more information or to participate in this industry standard initiative for advisor auditing please contact us.