We call it “helpful compliance.” Following the maxim that the best offense is a good defense, VSR aids our Financial Advisors with establishing a written document history in a responsive and timely manner. Other firms tend to offer the “black hole” of compliance—a winding trail of red tape in the approval process. “With our help, compliance becomes something the Rep wants to do, instead of something the Rep has to do,” according to VSR President Mike Stanfield. And he should know: he’s also a key decision-maker at VSR, working directly with Financial Advisors, and with years of experience in spotting potential compliance issues.

The proactive approach VSR takes with compliance means there aren’t multiple departments to go through, and no adversarial relationships. “Reps want to stay out of trouble, and we’re here to assist the Rep in preventing compliance mistakes,” explains Stanfield. “It’s like being at the grocery store when they announce ‘broom and mop to aisle seven.’ You know something has been broken and a mess has been made. Many other firms can stay busy mopping up the messes—we do our best to make sure nothing breaks in the first place.” To achieve that goal, VSR provides online compliance access, and features the Compliance Minute in our newsletter.

On those rare occasions when a compliance issue surfaces, VSR bypasses the blame game, keeping an open mind and choosing instead to focus on working with the Financial Advisors and the client to correct the issue. That’s where our strategy of defensive compliance pays off in providing a solid paper trail. But assisting Financial Advisors with compliance also means providing help in a wide range of areas, including continuing education, licensing, due diligence, E&O insurance, and advertising approval.

 Continuing Education
A big part of complying with regulations is keeping up with them. At VSR, Firm Element C.E. is delivered once a year during sessions at our National Sales Conference. No relying entirely on online courses, no traveling at the Financial Advisor’s expense to get continuing education, no off-the-shelf packages for which the Financial Advisor has to pay the broker/dealer. It’s all taken care of at one time for Financial Advisors attending the conference. Of course, the Compliance Minute in the newsletter also provides a palatable dose of continuing education throughout the year.

 Advertising Approval
Distinguishing appropriate standards between sales literature and advertising can be a daunting task for someone who hasn’t been involved in the process. Being a boutique firm allows VSR to provide quicker turnaround when a Financial Advisor submits ads, newsletters, or seminar invitations, and our stable employment history gives us a distinct advantage in providing dedicated professionals lending their years of experience in this area.

Reviewing our Financial Advisors’ ads to be sure they are accurate and not misleading, clarifying company relationships, and making sure proper disclaimers are in place are all elements of our responsive approach to advertising approval. In many cases, we can help connect the Financial Advisor with a vendor to help supply copy. We want to make sure the right information makes the maximum impact.

 E&O Insurance
When a litigious happy society gets to the point where fast food restaurants can be sued for causing obesity, providing Errors and Omissions (E&O) coverage becomes an important factor to Financial Advisors looking for the right fit with a broker/dealer. VSR has designed a comprehensive E&O plan for covering our Financial Advisors’ securities business, their registered investment advisory activities, and their insurance activities, except property and casualty.

The E&O program is administered through our compliance department. At a reasonable monthly cost, our plan provides our Financial Advisors a comprehensive policy with a $5,000 deductible. Limits are $1 million per occurrence, with a $2 million yearly aggregate. All Financial Advisors and their staff are covered beginning the day they join the VSR team.

 Licensing
All firms have licensing departments. In fact, some of them have too many. At VSR, the same department handles all of our Financial Advisors’ licensing needs, whether they be securities, insurance, or registered investment advisory requirements. One-stop, efficient licensing—we have the contacts to get it done so it doesn’t become a stumbling block for Financial Advisors conducting their business.

VSR is hooked up electronically to the FINRA’s CRD system, and the same hands-on attention we’re known for giving in all compliance areas is given the same emphasis in licensing. VSR is registered as a broker/dealer in all 50 states, and VSR’s RIA is licensed with the SEC so that we can do advisory business in all states.