How Financial Advisors Can Automate IPS & Reg BI Disclosures to Streamline Compliance

Financial advisors, wealth managers, and RIA firm owners know all too well: regulations keep tightening and compliance paperwork just keeps growing. Creating a compliant Investment Policy Statement (IPS) and fulfilling Regulation Best Interest (Reg BI) disclosure requirements can slow down even the most seasoned advisory team. But manual processes aren’t just time-consuming - they open the door for errors, inconsistencies, and audit risk. Fortunately, automation is finally catching up to real-world compliance pain points. At Investipal, we’ve seen how the right technology can turn compliance from a drag into a differentiator. Here’s what you need to know - and how you can use purpose-built automation to streamline compliance while delivering exceptional client value.

The Compliance Bottleneck: Why Advisors Struggle with IPS and Reg BI

Manual compliance processes are more than a productivity issue - they hurt growth and credibility. Here’s what we hear from advisors and RIA leaders every week:

• Fragmented Tools: Juggling between templated documents, spreadsheets, and compliance checklists is error-prone and tedious.
• Slow Onboarding: Drafting IPS docs and preparing Reg BI disclosures can stretch onboarding from days to weeks, risking client trust and lost business.
• Reactive Updates: When markets shift or client situations change, keeping all disclosures up to date across accounts is overwhelming without automation.
• Lack of Personalization at Scale: Delivering custom compliance docs for each household is nearly impossible when stuck with static templates.

If any of this sounds familiar, you’re not alone. But automation has changed what’s possible.

What Is Compliance Automation? (And Why It’s Different in 2025)

Modern compliance automation replaces manual document prep, fragmented workflows, and after-the-fact audits with:

• Real-time, rule-based generation of IPS and Reg BI disclosures using your current client data and portfolio models.
• Integrated workflows that seamlessly update documents and disclosures whenever portfolio or risk data changes.
• Centralized, audit-ready storage with version history - no more hunting through email chains or folders during an SEC/FINRA exam.

But not all automation is created equal. What matters for advisors? Seamless onboarding, scale, and compliance confidence - across public and alternative portfolios and complex households.

Step 1: Automating Investment Policy Statements (IPS)

Forget old-school templates. At Investipal, we believe IPS automation starts with your actual client data. Here’s what’s possible:

• Instant Data Gathering: Use embeddable, customizable risk tolerance questionnaires (RTQs) and account aggregation to capture client goals, risk profiles, and constraints - no PDF juggling or re-keying data.
• AI-Driven IPS Generation: Once data is in, Investipal automatically drafts a compliant, household-specific IPS based on each client’s goals, risk capacity, and current asset allocation. Personalization at scale becomes the norm, not the exception.
• Real-Time Updates and Version Tracking: When markets shift or goals change, you can regenerate the IPS in seconds, maintaining a complete version history for audit readiness.

This means faster onboarding, fewer errors, and a more engaging experience for your clients. No templates, no merged docs - just instant delivery and signature-ready documents.

Step 2: Streamlining Reg BI Disclosure Compliance

The SEC’s Regulation Best Interest ushered in heightened standards for advisors. But most platforms leave you with clunky, disconnected processes for fulfilling disclosure, care, conflict, and compliance obligations. Investipal automates it end-to-end:

• Automated Client Profiling: Capture investment objectives, risk tolerance, and financial situation in a unified workflow. Never miss key details - our system ensures the required data points are flagged before proceeding.
• One-Click Reg BI Document Generation: Instantly generate client-specific Reg BI disclosures, customized for each situation. No manual editing, no static templates - just seamless, compliant output.

Inside the Workflow: How Automation Actually Works

Let’s walk through what a fully automated IPS & Reg BI compliance workflow can look like with a platform like Investipal:

• Step 1: Intake & Aggregation
  • Unlimited file types - PDFs, images, even hand-written notes - are automatically scanned and converted to structured data via our AI-powered account statement scanner.
  • Clients complete  RTQs (risk tolerance questionnaires)  - results flow directly into the client profile, ready for use in document generation.
• Step 2: Portfolio Modeling & Analysis
  • Run instant portfolio X-Ray and comparative analytics on the aggregated data to ensure the IPS and Reg BI recommendations are driven by real, up-to-date numbers.
• Step 3: 1-Click IPS & Reg BI Generation
  • With all client data and analysis in one platform, you generate custom IPS and Reg BI documents pre-filled with household mandates, risk, objectives, and disclosures.
  • Documents can be downloaded, e-signed, or sent directly to clients - no more cut-and-paste or template juggling.
• Step 4: Automated Monitoring & Alerts
  • Whenever there’s a portfolio drift or major market shift, you receive automated alerts suggesting when an IPS or Reg BI update is required.
  • Every version is timestamped, stored securely, and ready for audit - helping you stay ahead of regulatory reviews.

Key Advantages of Compliance Automation for Advisory Firms

• Speed: Onboarding and compliance documentation that used to take days or weeks now takes minutes. Advisors recapture hours to spend on client relationships and advice.
• Accuracy: Eliminate the risk of manual errors, missed disclosures, or outdated records. Automation checks data consistency across every household and account.
• Audit Confidence: With every disclosure and IPS digitally archived and versioned, you’re ready for any regulatory audit - no more frantic file searching.
• Scalability: Grow AUM without adding manual staff or falling behind on compliance, even as you add new advisors or household relationships.

Best Practices When Deploying Compliance Automation

• Start with a Process Audit: Map out how IPS and Reg BI are currently handled - where are manual steps, delays, and risks lurking?
• Centralize Data: Use platforms that pull in all client, account, and risk info into a single system - no more cut-and-paste.
• Personalize at Scale: Demand workflows that adapt IPS and Reg BI language based on the specifics of each client household, not one-size-fits-all templates.
• Monitor, Don’t Forget: Ensure your automation platform alerts you as soon as policies drift, keeping you one step ahead of regulators.
• Prioritize Security: Use a platform (like Investipal) that is SOC2 Type II compliant, with advanced encryption and permission controls to safeguard sensitive client data.

Why This Matters Now: Advisors Who Automate, Win

Regulatory demands are only increasing - every year brings new documentation, more audits, and fiercer penalties for non-compliance. But it’s not just about avoiding fines; it’s about building institutional trust and growing your firm:

• Clients are more likely to engage if onboarding is seamless and error-free.
• Scalable, automated personalization drives referrals and retention.
• You get time back for reinvesting in what matters: your clients, your team, and your growth roadmap.

Move From Compliance Chore to Competitive Advantage

IPS and Reg BI aren’t going away - in fact, the bar keeps rising. But with real automation, what once felt like a compliance burden now becomes a core differentiator for your practice. Whether you’re an independent advisor, a scaling RIA, or the operations leader at a multi-advisor firm, it’s time to expect more from your technology.

If you’re ready to see how seamless compliance can be, book a personalized demo with Investipal. We’ll show you exactly how our automation drives productivity, reduces manual touch points, and helps your firm scale with confidence. Spend less time on paperwork, and more time on clients - starting today.