Finsie is a financial services marketplace that connects individuals with qualified financial professionals.
Founded in 2020, Finsie provides access to financial planners, investment advisors, accountants, attorneys, and career coaches. The platform focuses on transparency, trust, and helping users achieve their financial goals by offering unbiased recommendations without selling personal information. Members can book virtual consultations with fee-only advisors to receive tailored financial advice on various topics, including retirement planning, tax optimization, and estate planning.
Objective
Finsie aimed to implement a compliance program to meet SEC regulations for its early-stage Registered Investment Advisor (RIA) platform.
The objective was to create a regulatory-compliant environment supporting Finsie’s financial services innovation that enables users to seamlessly connect with qualified financial professionals.
Background
Finsie approached InnReg during its early stages with a vision to revolutionize the financial services industry by creating a technology-driven marketplace. The platform was designed to help users quickly and easily find financial advisors aligned with their specific needs based on customizable criteria such as location, services, and credentials.
Focusing on transparency and trust, Finsie sought to offer unbiased financial advice without compromising user privacy. However, the innovative nature of their offering presented unique regulatory challenges that required specialized compliance solutions.
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Challenges
The company’s business strategy was to fill a market niche by building a technology-driven solution to meet consumer expectations in a highly regulated industry.
Designing and implementing targeted compliance solutions for such an innovative offering is particularly challenging due to the lack of regulatory guidance precedence and established industry best practices. Therefore, Finsie required current and specialized knowledge to select appropriate tools and apply new forms of compliance expertise.
InnReg's Solution
InnReg played a crucial role in assisting Finsie with the SEC registration process, helping regulators understand the unique and innovative nature of Finsie's offering. Our team of consultants guided Finsie in designing its platform to meet regulatory requirements while maintaining its distinctive features.
Additionally, InnReg established the company’s custom compliance program to meet ongoing state and federal requirements. This included AML processes, information security, vendor management, employee compliance, registration maintenance, and reporting requirements.
Specifically, InnReg:
Implemented a custom compliance program leveraging automated tools and outsourced compliance solutions.
Provided expert perspectives and strategic advice.
Developed platform workflow processes to mitigate regulatory risks, including client disclosures, processing advisory agreements, and data usage.
Customized a proprietary compliance dashboard to track tasks and reviews, such as advertising and social media reviews, vendor management, and continuing education.
Assisted with the overall SEC registration process.
Client Results
Finsie successfully launched an innovative digital marketplace where financial advisors and investors can collaborate, adhering to both the letter and spirit of new regulations and guidance related to advisor marketing and digital advice.
The partnership with InnReg enabled Finsie to develop an effective and scalable compliance program, mitigating regulatory risk and establishing the necessary infrastructure to support rapid growth and scalability.
