Why Your Five-File Review Model Is Giving You a False Sense of Security
Most AFSLs are still relying on a traditional five-file review model. It’s predictable, it’s familiar - and it’s giving advice business owners a completely false sense of comfort.
In a recent video session, Tangelo Advice Consulting Director Selin Ertac sat down with Senior Consultant Paula Draney, a specialist in monitoring and supervision uplift, to break down exactly what is broken with traditional compliance models and what a better approach looks like.
It was a high-energy session with strong interest from the community.
We took a deep dive into:
Surface-level tick-box checklists often fail to identify inconsistent client file information and actual root causes.
A rigid "five files for everyone" approach wastes valuable resources and allows systemic, costly errors to go unnoticed.
Modern risk-based programs bring together existing business data to target monitoring exactly where your highest risks sit.
Internal compliance teams need external calibration to avoid giving advisers conflicting answers and working in silos.
AI is fantastic for exception-based triaging and theme detection, but human critical thinking remains entirely irreplaceable.
Shifting your supervision framework from consequence management to a coaching model actively builds adviser confidence.
While this was a monthly session for our regular viewers, we were thrilled to open it up to a broader audience.
The full recording is available now - simply hit play on the video to catch up on the session.