Disclosure Automation in Finpace

Finpace simplifies the compliance process by automating the timely delivery of crucial disclosures, such as ADVs and Form CRS, ensuring that advisors stay compliant without the risk of forgetting or missing deadlines.

By automating disclosure delivery, Finpace helps protect both the advisor and the firm from regulatory violations, while enhancing the overall client experience.

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How Finpace Automates Disclosure Delivery

Finpace automates the process of sending disclosures, ensuring they are delivered at the correct time and to the correct client, based on the regulatory requirements. Key features of disclosure automation include:

• Automated ADV & Form CRS Delivery: Finpace automatically sends required disclosures to clients, such as Form ADV Part 2A, 2B, and Form CRS, at specific points in the client journey (e.g., during onboarding, contract signing).
• Advisor-Specific Disclosures: When a client enters into an advisory contract with a specific advisor within the firm, Finpace ensures the client only receives the corresponding ADV 2B of that advisor. This prevents any confusion and ensures accurate compliance with disclosure regulations.
• Admin Functionality: If an admin is working on behalf of an advisor, Finpace ensures the correct disclosures are still delivered automatically, with no extra steps required from the admin or advisor.

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Benefits of Disclosure Automation

• Timely Compliance: Advisors don’t need to worry about manually delivering disclosures on time. Finpace ensures all necessary forms are delivered exactly when they are required, minimizing the risk of regulatory fines or penalties.
• Accurate Delivery: Finpace’s system ensures that only the correct disclosures for a particular advisor are sent to the client. This guarantees that each client receives the correct and specific ADV 2B related to their advisor, maintaining full compliance with regulatory standards.
• Efficient Admin Support: Admins working on behalf of advisors no longer have to track or manually send out disclosure documents. Finpace automates this process seamlessly, allowing for smoother operations within the firm.

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How to Use Disclosure Automation in Finpace

To ensure your disclosures are set up and automated correctly:

1. Configure Your Disclosures: Admins should ensure that all relevant forms, such as ADV 2A, ADV 2B, and Form CRS, are uploaded and configured within the Finpace platform.
   1. Firm Admin Users will need to add disclosures in Firm Settings > Disclosures
   2. Advisor Users will need to add disclosures in Settings > Disclosures
2. Enable Disclosure Automation: When creating or managing advisory workflows, enable disclosure automation so that the system automatically triggers the delivery of these forms at the appropriate stage in the client journey.
3. Assign Advisor-Specific Disclosures: Ensure that each advisor’s specific ADV 2B is correctly assigned within the system so that clients receive the right disclosures during onboarding or contract execution.
4. Monitor Disclosure Status: Use the Finpace dashboard to track disclosure deliveries and ensure they have been sent and received in a timely manner.

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Best Practices for Using Disclosure Automation

• Keep Forms Up-to-Date: Ensure that all disclosure forms (ADV, Form CRS, etc.) are current and reflect the latest regulatory updates. Finpace automates the delivery, but the accuracy of the forms depends on what is uploaded.
• Review Client-Specific Requirements: Double-check that each advisor’s ADV 2B is correctly associated with their profile, ensuring that clients only receive disclosures relevant to their specific advisor.
• Leverage Admin Capabilities: Admins can manage the disclosure delivery process without worrying about compliance errors or missing deadlines. The system is fully automated, ensuring smooth operations.