Challenge

A Midwest Broker-Dealer with 300 brokers needed to accommodate heightened compliance requirements amidst rapid growth. It needed a compliance system that could not only manage the books and records for over 100 OSJ branches as business grew, but also offer the flexibility to support a complex commission structure.

To do this, the company needed to replace its under performing compliance system and clean up its Excel®-based commissions processing. They chose EAI Information Systems to help them.

Solutions

After an evaluation of the firm’s system and a complete review of the compliance and commission structure and reporting requirements, EAI implemented the EAI Data Management Vault with Compliance and Commissions modules. The system accomplished the following:

• Established an automated and consistent regulatory/compliance process across all branches nationwide.
• Automated identifying and correcting inaccurate ticket and service charges. 
• Developed comprehensive, transparent tracking and accountability of multi-tier payout levels.
• Consolidated reports to capture all multi-tier payouts on one report.

Results

With EAI’s help, the Broker-Dealer created a consistent and accurate solution for the oversight of over 100 OSJ branches.

• In a short period of time, the multi-tier commission structure and associated reports were finalized and running smoothly and accurately.
• The client was able to reduce the number of full-time employees devoted to the internal support of commission tracking, reporting and compliance.
• Profitability-measuring reports were accurate on all broker and branch levels, which enabled retention of brokers at higher compensations.

Since completing the installation, EAI has delivered consistent technical support to ensure the consistency the firm needs to maintain timely, accurate compliance reporting and commission payouts.