Don’t Let NIGO Errors Keep You Up at Night

Nothing stalls momentum like a NIGO error. You think you’re ready to open the account, but instead you're chasing missing fields, resending forms, and explaining delays to a client who's already wondering if they made the right choice. These errors don’t just slow down paperwork, they disrupt your entire client experience. The good news? They’re highly preventable. With the right data strategy and a few smart workflows behind the scenes, your team can catch issues before they happen and keep onboarding moving forward. Let’s look at the five most common NIGO mistakes and how to stop them at the source.

The Bigger Picture

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.

5 NIGO Errors To Watch for

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.”

Reducing NIGO errors isn’t just about catching mistakes, it’s about building a system where nothing slips through the cracks. With Hubly, your team can clearly see where every client stands in the new account process and across your entire service pipeline. That level of visibility makes it easier to spot delays, shift responsibilities, and continuously improve how your office operates. Want to see the impact for yourself? Start your free 30-day trial of Hubly today and give your team the tools to run a smoother, more responsive client experience.