US-12626265-B2 - Systems and methods for enhancing regulatory compliance through digitization

Abstract

Systems, apparatuses, methods, and computer program products are disclosed for enhancing regulatory compliance through digitization. An example method includes automatically generating a digital affiliated business arrangement disclosure statement (ABAD) for a client, and causing presentation of the digital ABAD by a graphical user interface (GUI) of a client device associated with the client. The example method further includes causing referral of the client to an affiliate. The example method further includes generating a digital ABAD record and storing the digital ABAD record.

Inventors

• Jennifer L. Wiig
• Richard Wells
• Pamela Rehg
• Janette K. Henry
• Danya Duddleston
• Sarah Spindler
• Michael Chauvin
• Mark Iverson

Assignees

• WELLS FARGO BANK, N.A.

Dates

Publication Date

20260512

Application Date

20240911

Claims (20)

1. 1 . A method for enhancing regulatory compliance through digitization, the method comprising: automatically generating, by digitization circuitry via a processor, a digital affiliated business arrangement disclosure statement (ABAD) for a client; causing, by communications circuitry via the processor, presentation of the digital ABAD via a graphical user interface (GUI) at a client device associated with the client; in response to receiving an indication that the digital ABAD was viewed using the client device, digitally causing, by the communications circuitry via the processor, referral of the client to an affiliate in real-time, wherein the indication is received in response to the client having scrolled through an interactive window displaying the digital ABAD at the client device; generating, by the digitization circuitry via the processor, a digital ABAD record in response to the presentation of the digital ABAD; and storing, by the digitization circuitry and via the processor, the digital ABAD record in memory.
2. 2 . The method of claim 1 , wherein digitally causing the referral of the client to the affiliate comprises: causing, by the communications circuitry via the processor, a browser of the client device to navigate to a webpage associated with the affiliate.
3. 3 . The method of claim 1 , wherein digitally causing the referral of the client to the affiliate comprises: causing, by the communications circuitry via the processor, the client device to open a mobile app associated with the affiliate.
4. 4 . The method of claim 1 , further comprising: receiving, by the communications circuitry via the processor and from the client device, an indicator of interest, wherein the digital ABAD is automatically generated in response to receiving the indicator of interest.
5. 5 . The method of claim 1 , wherein causing presentation of the digital ABAD comprises embedding the digital ABAD into a webpage being displayed by the client device.
6. 6 . The method of claim 1 , further comprising: updating, by the digitization circuitry via the processor, the digital ABAD record to include an indicator that the digital ABAD was viewed using the client device.
7. 7 . The method of claim 1 , further comprising: retrieving, by the digitization circuitry via the processor, the digital ABAD record in response to a regulatory inquiry.
8. 8 . An apparatus for enhancing regulatory compliance through digitization, the apparatus comprising: a processor; digitization circuitry configured to automatically generate, via the processor, a digital affiliated business arrangement disclosure statement (ABAD) for a client; and communications circuitry configured to: cause, via the processor, presentation of the digital ABAD via a graphical user interface (GUI) at a client device associated with the client, and in response to receiving an indication that the digital ABAD was viewed using the client device, digitally cause, via the processor, referral of the client to an affiliate in real-time, wherein the indication is received in response to the client having scrolled through an interactive window displaying the digital ABAD at the client device; wherein the digitization circuitry is further configured to: generate, via the processor, a digital ABAD record in response to the presentation of the digital ABAD, and store, via the processor, the digital ABAD record in memory.
9. 9 . The apparatus of claim 8 , wherein the communications circuitry digitally causes the referral of the client to the affiliate by: causing, via the processor, a browser of the client device to navigate to a webpage associated with the affiliate.
10. 10 . The apparatus of claim 8 , wherein the communications circuitry digitally causes the referral of the client to the affiliate by: causing, via the processor, the client device to open a mobile app associated with the affiliate.
11. 11 . The apparatus of claim 8 , wherein the communications circuitry is further configured to receive, via the processor and from the client device, an indicator of interest, and wherein the digitization circuitry automatically generates the digital ABAD in response to receiving the indicator of interest.
12. 12 . The apparatus of claim 8 , wherein causing presentation of the digital ABAD comprises embedding the digital ABAD into a webpage being displayed by the client device.
13. 13 . The apparatus of claim 8 , wherein the digitization circuitry is further configured to update, via the processor, the digital ABAD record to include an indicator that the digital ABAD was viewed using the client device.
14. 14 . The apparatus of claim 8 , wherein the digitization circuitry is further configured to retrieve, via the processor, the digital ABAD record in response to a regulatory inquiry.
15. 15 . A computer program product for enhancing regulatory compliance through digitization, the computer program product comprising at least one non-transitory computer-readable storage medium storing software instructions that, when executed, cause an apparatus to: automatically generate a digital affiliated business arrangement disclosure statement (ABAD) for a client; cause presentation of the digital ABAD via a graphical user interface (GUI) at a client device associated with the client; in response to receiving an indication that the digital ABAD was viewed using the client device, digitally cause referral of the client to an affiliate in real-time, wherein the indication is received in response to the client having scrolled through an interactive window displaying the digital ABAD at the client device; generate a digital ABAD record in response to the presentation of the digital ABAD; and store the digital ABAD record in memory.
16. 16 . The computer program product of claim 15 , wherein the software instructions that, when executed, cause the apparatus to digitally cause the referral of the client to the affiliate further cause the apparatus to: cause a browser of the client device to navigate to a webpage associated with the affiliate.
17. 17 . The computer program product of claim 15 , wherein the software instructions that, when executed, cause the apparatus to digitally cause the referral of the client to the affiliate further cause the apparatus to: cause the client device to open a mobile app associated with the affiliate.
18. 18 . The computer program product of claim 15 , further comprising software instructions that, when executed, cause the apparatus to: receive, from the client device, an indicator of interest, wherein the digital ABAD is automatically generated in response to receiving the indicator of interest.
19. 19 . The computer program product of claim 15 , wherein the software instructions that, when executed, cause the apparatus to cause presentation of the digital ABAD further cause the apparatus to embed the digital ABAD into a webpage being displayed by the client device.
20. 20 . The computer program product of claim 15 , further comprising software instructions that, when executed, cause the apparatus to: update the digital ABAD record to include an indicator that the digital ABAD was viewed using the client device, and retrieve the digital ABAD record in response to a regulatory inquiry.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS This application is a continuation of U.S. patent application Ser. No. 17/321,985, filed May 17, 2021, which claims the benefit of U.S. Provisional Patent Application No. 63/153,267, filed Feb. 24, 2021, each of which are incorporated by reference herein in their entireties. TECHNOLOGICAL FIELD Example embodiments of the present disclosure relate generally to digitization and, more particularly, to systems and methods for enhancing regulatory compliance through digitization. BACKGROUND The Real Estate Settlement Procedures Act of 1974 (RESPA) is designed to protect homeowners by assisting them in becoming better educated while shopping for real estate services. To this end, when a referring party in an affiliated business arrangement is making a referral for real estate settlement services to one of its affiliates, RESPA requires delivery of an affiliated business arrangement disclosure statement (ABAD) to the party being referred. The ABAD is a document setting forth the nature of the business relationship between the referring entity and its affiliate and contains information required by Regulation X under RESPA. BRIEF SUMMARY As technology advances and more and more business occurs digitally, legacy regulatory obligations can often present unexpected burdens or barriers to firms wishing to offer products and services to their clients. The requirement to provide clients with an ABAD is one such example. Consider that a securities licensed financial advisor (FA) is uniquely well-placed to recommend products and services to clients that may enhance their financial circumstances. Many such products and services may involve real estate settlement services, and may be subject to the requirements of RESPA. Where the FA wishes to refer a client to a trusted affiliate for real estate settlement services, RESPA requires delivery to the client of an ABAD apprising the client of the nature of the relationship between the FA's organization and the affiliate. Historically, interactions between FAs and clients would occur face-to-face, making delivery of an ABAD a relatively straightforward exercise. However, interactions between FAs and clients have become increasingly reliant upon telephone or digital engagement, and this trend has significantly accelerated in response to the emergence of the COVID-19 pandemic in early 2020. When engaging digitally or over the phone, delivery of an ABAD to a client is not as straightforward as when done in person. Another confounding factor is that many brokerages and advisory firms are finding that more and more of their clients are utilizing robo-advisors or are independently managing their own portfolios using the increasingly sophisticated trading software that is proliferating throughout the wealth management industry. For such clients who do not have a dedicated FA, there is no individual who is well-positioned to manually ensure delivery of an ABAD, resulting in a situation in which the brokerage or financial advisory firm cannot easily comply with regulatory requirements regarding delivery of an ABAD using traditional manual methods. As a result, a brokerage or financial advisory firm in this position may simply decide not to make referrals to affiliates to such clients. Accordingly, a need exists for new tools for delivery of an ABAD to a client, both to ease the increasingly complex burden on FAs caused by delivery of ABADs to remote clients, and to enable delivery of an ABAD to those clients who do not have an assigned FA in the first instance. Systems, apparatuses, methods, and computer program products are disclosed herein for solving such problems, and using digitization of the ABAD delivery process to enhance regulatory compliance. In one example embodiment, a method is provided for enhancing regulatory compliance through digitization. The method includes automatically generating, by digitization circuitry, a digital affiliated business arrangement disclosure statement (ABAD) for a client, and causing, by communications circuitry, presentation of the digital ABAD by a graphical user interface (GUI) of a client device associated with the client. The method further includes causing, by the communications circuitry, referral of the client to an affiliate, generating, by the digitization circuitry, a digital ABAD record; and storing the digital ABAD record. In another example embodiment, an apparatus is provided for enhancing regulatory compliance through digitization. The apparatus includes digitization circuitry configured to automatically generate a digital affiliated business arrangement disclosure statement (ABAD) for a client, and generate a digital ABAD record. The apparatus also includes communications circuitry configured to cause presentation of the digital ABAD by a graphical user interface (GUI) of a client device associated with the client, and cause referral of the client to an affiliate. Furthermore, the apparatus incl