Next-Generation Investing Drives Legal Changes
Both investing strategies and the legal ecosystem are constantly changing. The next generation’s changes to their investing methods aren’t isolated. Legal departments must adapt to protect their companies throughout these changing needs. Experts have outlined suggestions to adapt to some of these changes. Forward-thinking legal departments should follow their advice to remain competitive and compliant.
Clarify the Legal Department’s Priorities
Leadership at investment firms is not necessarily familiar with the ins and outs of legal issues. Executives may have a passing familiarity with some issues, but they will not be able to recognize every situation that requires a legal team’s input. The legal department needs to give other departments clear guidelines on when they should be contacted.
Prepare for Changes to the Legal Ecosystem
Just like next-generation investing features disruptive trends, there will be major changes to the legal ecosystem in the coming years. Many of these involve adopting new technology, such as AI, digitization, and machine learning.
The rise of people working remotely also requires the legal team to adapt. For example, they need to ensure that their team can access files and data without compromising security. A cybersecurity risk could potentially lead to legal liability.
Attract and Keep the Best Talent
With the changes to the legal landscape, legal teams need to make sure that they can attract talent that can adapt to those changes. They also need to ensure that their current departments have the tools they need to learn new skills and adapt.
This is especially important because the next generation has evolving views about more than just investing and wealth management. They also have changing attitudes towards what to expect from their jobs. There are multiple ways for legal departments to attract and maintain talent, such as offering opportunities to learn new skills. Some companies are also making work more exciting with interdisciplinary teams.
The next generation of investors has new ideas about wealth management and investing. These new ideas cause a ripple effect and have led to changes in the legal ecosystem. Savvy legal departments at financial institutions will incorporate the right strategies to adapt to that change.