The Unexpected Magic of an External Compliance Audit

Outsourcing your compliance audit

Recently, while sipping on my morning brew, I mused over a conversation I had with a close friend, a seasoned Independent Financial Adviser (IFA). She was at a position in her business where she wished to grow but wanted a holistic approach across her business. She had confided her apprehension about compliance, a shadow ever-present in our financial landscape. Compliance – it's intricate, unavoidable, and slightly... dry. Yet, it holds its magic.

As professionals navigating the busy waters of financial advice and client relationships, we often find our compass pointing towards two distinct poles – the passion that drives us and the intricate threads of compliance that bind us. Is it possible to embrace both without diluting our focus?

The Natural Evolution of Growing Businesses

Every successful venture goes through phases. From its nascent stages, fuelled by passion and ambition, to its maturity, where operational efficiency takes precedence. As businesses expand, they soon find that their foundation needs to be strong enough to support the increased weight of Governance, Risk, and Compliance. It’s at this juncture that external expertise becomes not just beneficial but essential.

The Internal Compliance Dance

Whilst many firms boast an in-house compliance team, striving to protect and maintain a firm’s reputation, and maintain their compliance with the FCA regulations. Governance, Risk and Compliance are interwoven threads and to truly address them, a vantage point is needed that captures the entire business. An external perspective can often provide that ‘magic touch’ of a fresh eye. The lingering thought here, and perhaps the elephant in the room, is trust. Can an internal team trust an outsider to waltz into their realm, potentially pointing out overlooked gaps?

Now I get it, I recall the unspoken tensions, the quickened heartbeats whenever the topic of external audits arose, and that nagging thoughts: "Do they not trust me?", ‘Is my expertise being questioned?’, ‘Why bring an outsider in?’.

Having transitioned from the inside to the helm of ‘The Genie’, I've traversed both paths.

Yet, what if I told you it’s not about someone stepping on your toes but rather a partnership dance where both lead at different times?

And as businesses grow, there needs to be a seamless transition between operational management, compliance, risk oversight and independent assurance. to ensure Governance is effective.  It’s about ensuring each decision, each strategy, aligns with the broader vision, mitigates potential risks, and adheres to regulations.

Shedding Light on the Shadows of Doubt

However, the idea that venturing outside for compliance support equates to mistrust or inefficiency within, and these feelings I had, I later discovered, weren’t unique to me. But, as I delved deeper and evolved in my journey, I began to understand the broader canvas of Governance, Risk and Compliance. An external audit wasn't a reflection of our inadequacies but rather an additional layer of assurance. Think of it this way: A musician can create a soulful melody, but sometimes, it's the gentle touch of another artist that elevates it to a symphony. It's not about replacing; it’s about enhancing.

The Genie Whisper

I've often thought of myself as that elusive guide, one who, with a blend of expertise and genuine care, can illuminate blind spots while preserving the trust that has been nurtured within teams. I don’t come to overshadow but to light the path. Imagine revisiting your favourite Disney movie, each time you uncover new layers previously unnoticed. I’ve been in those in-house shoes. I've felt the pangs of doubt, and it’s precisely this experience that allows us to approach our audits with sensitivity, respect, and a genuine desire to uplift.

But why an external audit, you ask? Think of it as a hearty conversation between two experts - your in-house team, seasoned with its insights, and the Genie, armed with a bird’s-eye view of the industry and the Governance of your firm. Together, they create a symphony of perspectives, turning potential vulnerabilities into growth opportunities. It’s about initiating conversations, fostering a culture of openness, and ensuring that every member, internal or external, feels valued. Having been on both sides, I prioritize creating an atmosphere where everyone feels not just heard but cherished.

Reflect, But Act

Now, as I sit back, and reflect I wonder: How many of us are holding back from this beautiful duet of internal expertise and external insights? Are you, mulling over the intricacies of compliance and its evolution to Governance and Risk, searching for a middle path that safeguards integrity while championing growth? This is the unparalleled beauty of collaboration. When in-house teams and external auditors work in tandem, the results can be transformative. It’s not just about ticking regulatory boxes but about crafting a tapestry of trust, expertise, and continuous growth.

Reflecting on my journey, I believe growth is multi-dimensional and I feel an overwhelming sense of gratitude. To the in-house days that shaped me, to the magical journey with The Genie, and to the countless teams I’ve had the privilege of collaborating with. There's magic in every step, in every audit, in every collaboration.

And for those in the in-house compliant team, know that your role is invaluable, an external audit isn’t there to overshadow you but to shine alongside you. It’s about harnessing the collective strengths, highlighting the good work the team is doing (cause let’s face it, it only ever seems like you have to deliver bad news and your good work is often overlooked) addressing vulnerabilities, making your job easier and most importantly evolving together.

Summon the Genie

If this resonates, let’s chat. Dive deeper into how I can work alongside you and your team. It’s about growth, trust, and the unique magic that happens when professionals collaborate.