UBCNews - Business - Are You Prepared For 2025 RIA Compliance Changes? Experts Explain Challenges

Episode Date: November 16, 2025

You know, I've been looking at some fascinating data about what's keeping investment advisers up at night in 2025, and it's not what you might expect. RIA Compliance Technology City: Scottsdale Address: 10031 E Dynamite Blvd Suite 240 Website: https://riacomptech.com/

You know, I've been looking at some fascinating data about what's keeping investment advisors up at night in 2025, and it's not what you might expect. Oh, really? I'm curious what's causing the most anxiety these days. What's caught your attention? Well, here's something that might surprise you. Artificial intelligence has actually overtaken the SEC's marketing rule as the number one compliance concern among investment advisors. That's pretty significant, considering the marketing. marketing rule held that top spot for three years running. Wow, that is a shift. Though when you think about it, it makes sense given how rapidly AI is being integrated into financial services. Do we have any specific numbers on AI adoption rates? Actually, yes. The latest investment management compliance testing survey indicates that 40% of firms have formally adopted AI tools for

internal use. However, a concerning aspect is that 44% of those firms lack any formal testing or validation of their AI outputs. That's pretty alarming, isn't it? I mean, using AI without proper validation seems like a recipe for trouble. Exactly. And you know what's interesting? While firms are embracing AI internally, they're being much more cautious about client-facing applications. Only about 5% are using AI for client interactions. Makes sense. Nobody wants to risk client relationships with Unproven Tech. What other compliance concerns are keeping advisors up at night? That's a great point. We'll come back to that in just a moment. But first, a quick word from our sponsor. Are you struggling to keep up with the shifting compliance world? RIA compliance technology is here to

assist. Founded in 2017, we understand the challenges of managing complex regulations and deadlines. Our compliance management solutions streamline the entire process, from submissions to data collection and workflows. Visit us at riacomptech.com to learn how we can assist your firm in staying ahead of compliance challenges. And we're back. So to answer your question about other concerns, AML readiness is actually the second biggest concern at 41%, followed by cybersecurity controls at 38%. Speaking of AML, I heard there was some recent news about that. Didn't the Treasury Department just make an announcement?

Yes. This is actually pretty significant. FinCEN just announced they're postponing the effective date of the AML rule from January 2026 to January 28. That's a two-year extension. Well, that should give firms some breathing room. Do we know how prepared firms are currently for these AML requirements? The data shows that while 83% of firms have some AML policies in place, only 22% have updated them to align with the new rule.

So this extension could be really valuable for getting everything in order. You mentioned earlier about increased testing. Are firms shifting their focus in response to these new priorities? Absolutely. The survey showed some interesting trends there. Electronic communication surveillance is seeing increased testing at 61% of firms, cybersecurity at 55%, and advertising and marketing at 48%. Mm-hmm.

And what about AI testing specifically? That's jumped significantly. 46% of firms report increased testing in AI-related areas, up from 32% last year. And here's something interesting. Vendor due diligence rounds out the top five at 42%. You know, when you look at all these numbers together, it really paints a picture of an industry in transition, doesn't it?

It absolutely does. Have you noticed how these priorities tend to shift based on what the SEC is focusing on? That's so true. It's like a domino effect. When the SEC signals their priorities, the industry responds. What would you say to firms trying to manage all these changes? Well, I think it's important to be proactive rather than reactive. You know what I mean?

Like don't wait for regulatory pressure to start building out these programs. Makes sense. And I imagine having the right technology and systems in place is very important too. Definitely. And speaking of technology, for anyone interested in learning more about managing these compliance challenges, you can visit RIA compliance technology at the link in the description. They're really leading the way in assisting firms with these intricate challenges. This has been really insightful. Thanks for breaking it all down.

My pleasure. And to all our listeners, remember, staying ahead of compliance means building a stronger, more resilient business.