"What do you mean, Bill? How is compliance eroding your love of this business? Can you please be more specific?" I asked.

"Well", Bill replied, "we keep reinventing our record keeping system, but no matter how we organize our records, when an auditor visits it takes days to provide them with the information that they request. They never seem to make the same request twice, and we can't seem to anticipate their needs in advance. And while the auditor is here, the level of service that we are able to provide to our clients drops dramatically."

I had to agree that a drop in service, even for just a few days a year, was a serious concern. Bill had developed a very successful practice over his career, and clearly understood the importance of maintaining a high level of service. Let's face it, you win new clients based on promising a higher level of service than they are currently receiving, and you retain those clients by consistently delivering that higher level of service. So a temporary drop in service will be a disappointment to any clients that are affected, and could potentially result in lost business.

"Bill" I said, "you've raised a very serious concern and one that is shared by just about everyone in your profession. In a moment I'm going to show you how the right client care system not only makes it easy to meet the reporting needs that arise during your periodic audits, but can actually reduce the length and frequency of those audits. But before I do, are there any other compliance-related concerns that you'd like to share with me?"

For a moment, Bill was silent. But I could sense that there was something more on his mind, so I waited patiently for him to respond. "I have a friend" he said. "More of a mentor really. He has a very successful practice and really goes the extra mile for his clients. He's provided me with a ton of great advice over the years, and I credit him with much of my current success. Well, the thing is, he is currently being sued by one of his clients. It's very disturbing, because not so long ago he had a very sound relationship with that client. But the client's portfolio lost value over the past few years because of some decisions that the client made against my friend's advice. And now the client is taking their frustration out on my friend."

I was quiet for a moment, taking in what Bill had shared with me. And then I asked the obvious question. "Bill, are you concerned that something similar might happen to you in the future?"

"I have great relationships with all my clients, so it's hard to imagine", Bill replied "But my friend would have said the same thing about his clients a few months ago, and look at the situation he's in now. So I guess the answer is yes."

I spent the next hour showing Bill certain aspects of our firm's client care system. I showed him how centralizing literally all client information in a single database that comes equipped with flexible reporting tools makes it easy to respond to any request that an auditor may pose. I also showed him that the information was so simple to query that he had the option of allowing an auditor to perform some of the queries without requiring assistance from his staff. Not only would this reduce the disruption to normal business that takes place during an audit, but it also demonstrates openness and transparency, traits that auditors value.

He was also interested to learn that the right client care system can proactively ensure that compliance issues are addressed far in advance of an audit. For example, a system that automatically keeps track of the date of "Know Your Client" information can alert his team when it's time to freshen up a particular client's details. In short, he would have the option of setting his own internal compliance standards at a level higher than required by his broker/dealer, making it easy to identify and resolve compliance issues long before they would ever come to the attention of an auditor.

He could see that the right client care system could satisfy an auditor's needs in a very short time without the need for a drop in service during the audit. And a practice that consistently gets top marks during audits tends to get less ongoing scrutiny than other practices struggling to meet compliance requirements.

But I think what impressed Bill most was the scope and cohesiveness of the system. He was used to looking in one system for his e-mails, a second for "Know Your Client" information and transactions, a third for his schedule, a fourth for his letters, a fifth for his financial plans, a sixth for his…well, you get the idea. In short, it was very difficult for him to assemble a complete "snapshot" of a client. With all of his client information consolidated in a single database, he would be able to see literally everything to do with a client's account at the click of a button. I wasn't surprised when he commented "If my friend had a system like this, he wouldn't have any difficulty defending himself in his current situation". I couldn't help but agree. In court, the side with the best records is definitely in the stronger position.

Not surprisingly, shortly after our conversation, Bill became a client. And when I talk to him these days, his compliance headaches are all in the past. He can once again focus on serving his clients and making his business even more successful. And he's discovering that the right client care system can not only deal with his compliance concerns, but can also be a tremendous aid in the process of creating and maintaining relationships. However, that's a story for another day.