Scaling Reviews 2025: Governance, Risk & Compliance Guide

1. Governance Risk and Compliance in Scaling Reviews 2025 brokerssupport.com.au/blog/scaling-reviews-governance-risk-compliance/ September 17, 2025 Scaling Reviews for Multi‑Adviser Firms: QA, Version Control, and Audit Trails Aagam Shah Paraplanning September 17, 2025 Scaling Reviews for Multi‑Adviser Firms: QA, Version Control, and Audit Trails As multi-adviser firms grow, managing client advice and compliance becomes increasingly complex. What worked when the firm was small, simple checklists, informal review chats, and scattered document folders, quickly became a recipe for inefficiency and risk. More advisers mean more documents, more client interactions, and higher chances of errors slipping through the cracks. That’s where structured processes around Quality Assurance (QA), version control, and audit trails come in. But it’s not just about efficiency. At the heart of scaling these processes lies something even more critical: strong governance risk and compliance practices. Without them, firms face not only operational chaos but serious regulatory and reputational 1/7

2. consequences. Many multi-adviser firms today are exploring outsourced financial advice and paraplanning solutions to handle growing compliance and operational demands as they scale. While outsourcing helps reduce overhead, it also raises important questions around governance, version control, and auditability. Let’s explore how multi-adviser firms can approach this challenge and why focusing on governance isn’t optional, it’s essential. Key Takeaways: QA ensures consistent, high-quality advice. Version control tracks every document change. Audit trails provide transparency and compliance proof. Poor governance increases compliance and reputational risks. Strong frameworks are vital for scalable, outsourced solutions. Why Scaling Review Processes Is Challenging When your firm has one or two advisers, keeping track of client records, Statements of Advice (SOAs), and compliance tasks might be manageable. But as the number of advisers grows, so does the flow of documents, revisions, and client interactions. Without a structured system: Advisers may follow different processes. Versions of critical documents can get lost or overwritten. Important compliance steps might get missed. There’s no clear record of who approved what and when. This opens the door to poor client outcomes, regulatory breaches, and significant governance risk and compliance issues. So, how do you prevent that? 2/7

3. Quality Assurance: The Backbone of Consistency At its core, Quality Assurance (QA) is about ensuring that every piece of advice going to a client meets a consistent standard. It’s not just ticking boxes for the sake of compliance, it’s a way to deliver reliable, high-quality advice that clients can trust. What Good QA Looks Like: Standardised Checklists: Clear templates and guidelines ensure that every adviser covers the right points in every SOA or Record of Advice (ROA). Peer Review: A second set of eyes helps catch errors or omissions that the original author might have missed. Compliance Checkpoints: Specific compliance steps are embedded into the review process, reducing the risk of non-compliance. The Benefits: Implementing a strong QA process helps reduce mistakes, improves adviser accountability, and creates a clear path for compliance. It forms the first line of defense against governance risk management and compliance failures. Version Control: Tracking Every Change with Confidence Version control might sound like a technical term reserved for software developers, but in the context of multi-adviser firms, it’s a game changer. Without version control, firms often face situations where: Multiple versions of an SOA exist. It’s unclear which version was sent to the client. 3/7

4. Changes happen without proper records of who made them or why. A robust version control system ensures: Each document has a unique version number and timestamp. Every edit is logged along with the identity of the editor. Previous versions remain easily accessible for reference. This is critical for compliance and risk management because it provides clear accountability and a reliable history of document changes. It makes internal reviews more efficient and regulatory audits far less painful. Audit Trails: Creating Transparency An audit trail is a detailed, time-stamped record of every action taken on a document, from creation to approval to final distribution. Why are audit trails indispensable? They offer transparent records that prove the firm followed the correct processes. In the event of a compliance review or dispute, they show exactly who did what and when. They allow firms to spot unusual activities that could indicate errors or even misconduct. For firms managing multiple advisers, automated audit trails remove the guesswork. Instead of relying on manual logs, an automated system tracks every interaction, reducing the risk of human error and making compliance audits straightforward. Governance Risks That Arise Without Proper Processes Skipping structured review practices doesn’t just slow you down, it introduces real governance risks and compliance challenges. Here are the key risks multi-adviser firms face when these processes are lacking: 1. Inconsistent Advice Quality Without a standardised QA process, the advice provided can vary dramatically from adviser to adviser. This inconsistency isn’t just a compliance issue, it affects client trust and business reputation. Without a robust paraplanning outsourcing strategy backed by strong governance frameworks, firms risk inconsistent advice quality, unclear version control, and insufficient audit trails, making compliance audits stressful and risky. 2. Lack of Accountability Poor version control creates ambiguity. When a mistake is flagged, it’s almost impossible to trace who made the change or approved the document. This weakens the firm’s internal controls. 4/7

5. 3. Regulatory Non-Compliance Regulators expect firms to maintain clear records showing how advice is prepared, reviewed, and delivered. Without audit trails, firms can’t prove they followed compliance steps, increasing the risk of fines or license restrictions. 4. Data Integrity Risks Manual processes or inconsistent digital practices lead to lost files, overwritten documents, or outdated advice being sent to clients. These gaps are a recipe for disaster. 5. Poor Risk Identification When processes are ad hoc, systemic issues go unnoticed. Patterns of recurring mistakes remain hidden, and compliance loopholes widen over time. 6. Reputational Damage Compliance failures don’t stay private for long. A single regulatory breach can damage the firm’s reputation in a competitive market, impacting both client retention and new business opportunities. As highlighted by ASIC (Australian Securities and Investments Commission), AFS licensees and financial advisers continue to face serious compliance risks, especially as regulatory deadlines approach. ASIC has renewed its warning about licensees failing to meet obligations, emphasising the critical role of a well-implemented compliance management system in avoiding penalties and breaches. 5/7

6. How a GRC Framework Helps A well-implemented GRC framework (Governance, Risk, and Compliance framework) is the best way to manage these risks holistically. What it Provides: Centralised oversight of all compliance tasks. Clear governance policies defining responsibilities. Integrated systems for risk assessment, controls, and reporting. Using a compliance management system that aligns with your GRC framework allows you to embed QA, version control, and audit trails into everyday workflows. This turns governance from a burden into an enabler of growth. Governance Risk and Compliance Solutions: Leveraging Technology The good news? You don’t have to build everything from scratch. There are purpose- built governance risk and compliance solutions designed specifically for financial services firms. These tools help by: Automating version control and audit trail management. Offering compliance checklists and built-in QA workflows. Providing real-time dashboards to track governance metrics. Alerting you when key compliance tasks are due or incomplete. According to a report published by Institutional Investor, Registered Investment Advisers (RIAs) are growing their headcount and assets at a faster rate than competitors, signaling an increasingly complex operational landscape that demands stronger governance risk and compliance measures By adopting technology that integrates governance into your firm’s DNA, you reduce manual errors and free up advisers to focus on what matters most, delivering quality advice to clients. A Real-World Example Consider a mid-sized multi-adviser firm that struggled with audit failures and client complaints due to inconsistent document practices. After implementing a robust GRC framework supported by a compliance management system, they: Standardised their QA processes. Introduced automated version control and audit trails. Cut down document errors by over 60% in six months. Passed their next regulator audit without a single finding. This shows that solid governance risk and compliance solutions aren’t just for large firms, they’re essential for firms that want to scale efficiently. 6/7

7. Conclusion Scaling a multi-adviser firm doesn’t have to mean more headaches. In fact, it’s an opportunity to build a strong foundation for sustainable growth. By embedding QA, version control, and audit trails into your everyday processes, and tying them to a solid governance risk and compliance framework, you ensure that your firm remains consistent, accountable, and compliant, no matter how large it grows. Whether you’re considering hiring an in-house team or engaging an with outsourced financial services, integrating a solid governance risk and compliance framework will be key to ensuring your firm delivers consistent, compliant, and high-quality financial advice as it grows. The real question isn’t whether you can afford to implement structured governance processes, it’s whether you can afford not to. Aagam Shah Aagam Shah is a visionary leader and Chartered Accountant with a passion for driving organizational success through strategic financial management. As the CEO of NCS Global, Aagam brings a wealth of experience in overseeing operations, fostering growth initiatives, and maintaining a commitment to excellence in client service. His leadership is characterized by a strong focus on innovation and efficiency, ensuring that NCS Global remains at the forefront of the outsourcing industry. See Full Bio © Copyright 2025. All rights reserved. Designed by NCS Corp Pty Ltd. 7/7