You’re almost there. The client has signed, the paperwork is in, the new account is supposed to be open, and then you get the dreaded NIGO notice. Something’s missing. Something’s wrong. Now your team is chasing signatures, resending forms, and explaining delays to a frustrated client. Sound familiar? NIGO errors might seem like small setbacks, but they create real friction across your operations. They slow down onboarding, eat up staff time, and chip away at the client experience you worked hard to build. In this post, we’re breaking down the five most common reasons NIGOs happen and how your firm can start preventing them today.
A Cautionary Tale
While NIGO errors may not trigger fines, they’re often tied to broader compliance issues, particularly in recordkeeping. The U.S. Securities and Exchange Commission (SEC) has imposed hefty fines on firms for recordkeeping violations. For instance, in 2024, the SEC fined 26 firms a combined $392.75 million for failing to maintain and preserve electronic communications.
This worst-case scenario is unlikely to happen. However, in the interest of helping you sleep better at night, we’ve outlined the top five reasons for NIGO errors and how to get in front of them.
Beware of These 5 NIGO Errors
1. Incomplete or Missing Documentation
Missing or incomplete forms and documents can create delays. In these situations, advisors or clients overlook required fields or omit supplemental documentation, like identification or signatures.
How to Prevent This:
- Use a checklist to guide account opening activities.
- Implement digital forms with required fields tied to a workflow.
- Use tools like Docupace with built-in technology that ensures all required documentation is complete before submission.
2. Manual Data Entry Mistakes
Errors can find their way into documents, especially when advisors are under tight deadlines. Incorrect names, account numbers, or financial information can all lead to NIGO flags.
How to Prevent This:
- Use a digital solution like PreciseFP to collect and maintain clean, accurate client data.
- Double and triple-check critical details before hitting “submit.”
- Integrate your CRM with platforms like Docupace to improve accuracy.
3. Non-Compliance With Regulations
The financial services industry is governed by stringent requirements that vary by jurisdiction and account type. Failing to meet AML/KYC verifications or disregarding updated regulatory requirements often introduces delays.
How to Prevent This:
- Stay current on regulatory changes through ongoing compliance training.
- Integrate compliance-checking solutions into your account-opening process.
- Invest in platforms like Docupace, which automatically flags compliance issues before it’s too late.
According to the 2023 Kitces Report On Financial Advisor Technology Use, only about 54% of advisors reported using solutions to address compliance. Where do you stand in terms of adoption?
4. Incorrect Signatures or Missing E-Signatures
Signatures that don’t match clients’ official records or missing e-signatures are errors that can result in account application rejections.
How to Prevent This:
- Adopt e-signature solutions that verify authenticity and store records securely.
- Cross-reference signature requirements based on the account type and client profile.
5. Lack of Oversight and Communication
When account opening is a team effort, it can have unintended consequences and create trouble downstream. For example, poor coordination and lack of visibility can lead to miscommunication, delays, and errors.
How to Prevent This:
- Implement a centralized workflow management system like Hubly.
- Encourage advisors, clients, and back-office staff to use solutions that track real-time progress.
Reduce NIGO Errors, Worry Less
There’s a better way — investing in the right tools on the front end can save you precious time, resources, and even your hair. The 2024 Kitces Report On How Financial Planners Actually Do Financial Planning captures this sentiment: “The single greatest constraint on advisors’ productive capacity is time — making it their most valuable resource.”
One of the easiest ways to reduce NIGOs is to let clients provide their information directly through a secure, guided experience. With PreciseFP, you can send clients a clean, branded fact finder to complete on their own, or pre-fill it before a meeting so they can review and update any life changes. Either way, you’re collecting accurate data from the source and eliminating the back-and-forth that leads to errors. Want to see the difference for yourself? Start your free trial of PreciseFP today.
