The next section of the Definitive 2025 Guide to Regulatory Compliance for US Asset and Investment Managers looks at the evergreen best practices that help you build a resilient compliance program poised to meet these challenges.
Evergreen Compliance Best Practices for Asset Managers
Within all this change and trends certain compliance fundamentals remain constant. As you know a strong compliance foundation will help you weather new regulations on ESG, data, AI or deregulation or anything else. Below, we outline enduring best practices for asset and investment management compliance. These come with an emphasis on practical steps and using technology. Even if these sound familiar, it’s worth revisiting them through the lens of 2025’s environment as regulators are looking not just at what you do, but how well you do it.
1. Cultivate a Culture of Compliance from the Top Down
A compliant organisation starts with the right tone at the top. Senior management and boards should actively promote ethical conduct and regulatory compliance as core values. This isn’t just paying lip service, it means providing adequate resources, attention and empowerment for compliance officers. Effective compliance officers can act as “trusted advisors” to the business, not roadblocks. Encourage leadership to speak about compliance in business terms, for example how proper compliance protects investors and the firm’s reputation, or how it enables sustainable growth by avoiding costly scandals. Practical steps to bolster culture include regular compliance updates in management meetings, visible disciplinary actions for misconduct (to show rules matter at all levels) and integrating compliance goals into performance evaluations. Empower your compliance team to provide input on strategic decisions. For instance, launching a new product or entering a new market shouldn’t happen without a compliance risk assessment. When employees see that leadership cares, they’re far more likely to take on board their own compliance responsibilities.
2. Keep Pace with Regulatory Change (Horizon Scanning)
One of the biggest ongoing challenges is simply keeping up with new laws, rules, and interpretations. In 2024 alone, there were over 201,200 regulatory developments, that is 550 per day. This figure includes: guidance, policy, regulation and standards and statements as identified on the Corlytics risk intelligence platform.
This deluge is only increasing whether it’s deregulation or new regulation. Compliance teams must have a robust process for regulatory change management to avoid missing anything critical. Best practices in this area include establishing a horizon scanning function, either in-house or via a specialist service. This is to monitor relevant regulators (SEC, CFTC, FINRA, state regulators, as well as international bodies if you have global operations). Modern RegTech solutions can greatly assist here. For example, regulatory intelligence platforms like the Corlytics Regulatory Monitoring suite aggregate regulator notices and consultations worldwide and enrich them with risk scoring and analytics.
This aggregation and enrichment allows you to filter the ‘regulatory noise’. Then you can quickly identify only the developments that matter to your business. The Corlytics’ platform offers enriched regulatory data and comprehensive horizon scanning, all on a single platform, supporting firms in planning and prioritising compliance actions
Once a relevant change is noted, say the SEC finalises a new rule on private fund fee disclosure or FINRA issues guidance on social media use, the next step is impact assessment. Assign accountable owners to analyse what policies, procedures training or system changes are required to comply. Many firms use regulatory change trackers (some embed workflow tools) to document these assessments and track implementation. The goal is to never be caught flat-footed by a new regulation or enforcement trend. Proactivity is key as regulators have explicitly fined firms for failing to update compliance programmes and controls in light of new regulatory requirements.
Tip: Corlytics’ Regulatory risk intelligence platform doesn’t just surface relevant changes that are pertinent to your business, it lets you assign owners, track remediation workflows and link actions directly to impacted rules and controls. This creates a fully auditable trail that regulators love to see.
3. Conduct Periodic Risk Assessments and Monitoring
Regulatory compliance is not one-size-fits-all (if only!!). Within asset management, your specific risk profile depends on your products (mutual funds, private funds, SMAs, etc.), clients (retail vs institutional) and activities (trading, advising, distribution). An annual (or continuous) compliance risk assessment is an evergreen best practice to ensure you’re allocating resources to the most significant risks. Identify the regulatory obligations that apply to your business (SEC, CFTC, state laws, etc.) and assess where your exposures lie. For example, a firm managing alternative funds might have high conflict-of-interest risk (fees, valuations) and moderate AML risk. Whereas a wealth manager might have high sales practice risk and data privacy risk. Document your findings and use them to prioritise your compliance testing and monitoring.
Tip: Use Corlytics Risk Impact Scores to weight your compliance risks by regulatory exposure. This supports smarter resource allocation.
4. Strengthen Policies, Procedures, and Documentation
It’s a basic activity, but make your policies and procedures are comprehensive. They should be up-to-date and actually followed in practice. Regulators frequently cite firms for having inadequate or outdated written supervisory procedures. In 2025, with so many new and changing expectations (ESG, Reg BI, etc.), it’s critical to update your manuals to reflect current regulations. Kristy Grant-Hart, a well known author writing on compliance, advocates for practical, concise policies that employees can easily understand. A 100-page policy that sits on a shelf is far less effective than a 10-page one people actually read. Include examples or Q&As in key policies to illustrate how to handle real scenarios. Plus, don’t forget the importance of documenting your compliance activities. If it’s not documented, did it actually happen? Maintain records of training attendance, monitoring results and issue remediation. If you perform an annual compliance review, that report should candidly assess your programme and note any corrections made
Tip: Many firms are leveraging workflow tools or policy management software. Solutions like Corlytics Clausematch Policy Manager helps map each regulation to your internal controls and policies, ensuring nothing falls through the cracks.
5. Invest in Training and Communication
Regulations and policies mean little if your teams aren’t aware of them. Regular, targeted training is a must-do. The majority of asset management firms do have annual compliance training. However, firms can go further by having frequent micro-updates. For example, portfolio managers might get a focused session on insider trading and market abuse controls. Sales teams might need extra training on Reg BI and communications rules. Operations staff could get refreshers on AML procedures. Use real-world cases and enforcement stories to make it engaging as nothing focuses the mind like hearing about a peer firm that was fined millions for a lapse that could happen to your team. And if something has changed that is key to the business, you can send out brief, timely alerts.
Keep the dialogue open. Encourage employees to ask questions and report concerns. A well-publicised “open door policy” with compliance can surface issues early, before they become problems. Given that FINRA and the SEC both view failure to supervise as a perennial issue, proving that you actively train and supervise staff is also a defence if things don’t go to plan.
6. Leverage RegTech and Data Analytics for Efficiency
Finally, one of the best practices to future-proof your programme is embracing the right technology solutions. The volume and complexity of compliance work has outgrown purely manual processes. Incorporating RegTech solutions can make your programme more efficient, accurate, and adaptable. In fact, regulators encourage firms to innovate in compliance.
This means less time sifting through dozens of websites. And, more time actioning the relevant developments. Automated alerts and trackers (for themes like ESG, crypto, financial crime) can ensure you never miss a deadline or consultation paper. When paired with workflow, these tools also let you assign tasks and document compliance with new requirements – creating an audit trail that examiners will appreciate.
In thinking about tech, the cost-benefit should be evaluated as not every firm needs every gadget. But even a smaller firm might benefit from a compliance dashboard or an outsourced solution for regulatory updates. The trend is clear, those who smartly deploy technology will be better positioned to handle more regulations without linear increases in headcount.
Tip: With Corlytics heatmaps, you can spot where regulators are most active. This can be by risk theme or jurisdiction. Then you can use that information when considering focus areas. It’s a proactive way to shift from reactive compliance to strategic risk anticipation.
Conclusion – Staying Ahead and Future-Proofing Your Programme
Compliance professionals in asset and investment management have always worn many hats – advisor, monitor, educator, risk manager and sometimes firefighter. In 2025, with regulatory expectations higher than ever, it might feel like you’re wearing all those hats at once. But by focusing on the trends and best practices outlined in this guide, you can turn this challenge into an opportunity. Remember that regulators often provide clues to their concerns (through speeches, risk alerts, enforcement cases which are picked up on the Corlytics platform). Make it a habit to read those tea leaves and adapt accordingly. A proactive stance not only prevents violations but also positions your firm as a leader in compliance excellence.
Above all, never lose sight of the ultimate mission: protecting investors and maintaining market integrity. Compliance rules are simply tools to that end. Asset management, at its heart, is about stewarding others’ money responsibly. A strong compliance programme enables that trust to flourish. It can ensure that your organisation does the right thing, even when no one is looking. We can imagine the words of a seasoned CCO (and echoing Kristy Grant-Hart’s philosophy), “Compliance isn’t about saying no, it’s about enabling the business to go forward safely.” By staying informed and agile, you can guide your firm forward safely through 2025 and beyond. You can turn regulatory compliance from a checkbox activity into a competitive advantage. Stay informed, stay compliant, and lead the way in building a resilient, future-ready compliance programme. The regulators will keep raising, or changing the bar, but with the strategies in this guide, so will you, and you’ll be ready to clear it.