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How to Choose a ComplianceConsultant

Every financial services business occasionally needs outside help. Even well-run giants such as RBS, Lloyds, Aviva, Barclaycard, and many other firmsdeliberately choose to bring in compliance consultants on a regular basis.

Lee Werrell

CEI Compliance Limited

April 2011


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How to Choose a Compliance Consultant

(Acknowledgements to Alan Weiss, www.summitconsulting.com)

Every financial services business occasionally needs outside help. Even well-run giants such as RBS,

Lloyds, Aviva, Barclaycard, and many other firms deliberately choose to bring in compliance

consultants on a regular basis.

For smaller businesses, an outside consultant can offer the following advantages:

Objective advice, not geared toward political advancement or promotion

Frame of reference and best practices from other clients

Models and methodology to gain results more quickly than internal trial and error

Permanent transfer of skills to internal people

The problem, however, is that those external consultancies can create as many problems as they

solve. (One definition of a consultant: someone who comes to fix a problem and remains to becomea part of it.) These include:

Threatening employees by the

mere presence of an "outsider"

Reliance on "off-the-shelf"

fixed methods which don't fit

the current client very well

Lack of sensitivity to the client's

business, culture, and

environment (a financial

adviser practice is not run thesame way as an accountancy

practice)

Solutions that worked for large

organisations cannot always be

simply scaled down

"Ideal" solutions not really practical for the client's business and have limited or no real

value

I've been in consulting since 2000 and, to my astonishment, I find currently that about 50% of thosecalling themselves "consultants" don't really know what they're doing, but what is worse is that

almost 90% of those buying consulting services don't know how to tell the difference!

To remedy that, here is a primer on how to hire the best possible consultant for your needs:

Referrals:, Ask business colleagues you trust for names of people they have used for similar needs,

and find out specifically what the results were. (Don't ask the consultant for references, because

they will be hand-selected, wonderful, and meaningless.)

Credentials: Has the consultant ever worked in an adviser capacity? Have they ever held down a

conventional job? What are their academic compliance qualifications? How many similar IFAs orother organisations have been clients? Every consultant has to start somewhere, but I'd strongly
http://www.summitconsulting.com/http://www.summitconsulting.com/


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advise that their start not be with you! (They should start in a larger consulting firm, and should also

have "real world" experience.)

Chemistry: Meet with the prospective consultant several times before hiring. Ask yourself if you see

the other person as a peer and a potential partner. If you don't respect them, or see them as merely

a vendor or subordinate, don't hire them. You don't need another employee; you need a businesspartner for a particular issue.

Demeanour: The individual should look professional and act accordingly. (Don't worry if you get

their voice mail because good consultants should be busy. The key is, do they get back to you

promptly?) Their language should be clear and articulate. At meals, they should know which

silverware to use and not spill their soup on your lap.

Proposal: The consultant should provide you with a proposal that is based on achieving clear

business outcomes, and not on merely delivering technology or methodology. In other words,

running focus groups or delivering training programs is simply a task; improving sales results or

enhancing customer satisfaction is a business outcome. Achieving the former and not the latter isworthless.

Fees: The consultant should provide a fixed fee for the project. Hourly rates are not as effective,

because there is a "meter running" as long as the consultant is working, and there is a built in

conflict of interest, since the longer the project takes, the more the consultant is paid. Insist on a

fixed fee or at least a cap on the hours.

A good consultant frames an issue quickly but doesn't suggest solutions too quickly, because he or

she realises that they don't know what they don't know until they begin to gather more data. A goodconsultant will not promise the moon

and the stars, and will never base as

approach on tests or instruments that

are purchased for a few pounds from

other companies. (You get what you pay

for.)

A good consultant is someone you'll hate

to see go when the project ends on time,

and who you'll want to invite back at the

first appropriate new challenge.

Every business reaches a point where an

outside opinion or a breath of fresh air is

required. But just because someone lives over 100 miles from home and carrying a briefcase doesn't

mean he is a consultant. Use the criteria above and, most importantly, use your judgment: Is this

someone you would trust with your wallet?

Lee Werrell holds Chartered Members status with the CISI, is a Fellow of the Institute of Sales &

Marketing Management and a member of the Association of Compliance Consultant, the Business

Continuity Institute and holds the Certificate in Personal Financial Planning (Cert PFS). CEI


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Compliance works on an alternative basis by collaboration and does not charge per hour, day or

week. Call CEI on 0800 689 9 689 to make your first appointment.

For help call:

Lee Werrell FInstSMM Chartered MCSI Cert PFS

Managing Director

CEI Compliance Limited

[email protected]

Web: www.cei-compliance-limted.co.uk

www.skilledpersonsreports.co.uk

www.complianceconsultant.org

www.ceicompliance.co.uk

www.s166.co.uk
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