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

This is one of the most common reasons new account applications get held up. A missing field, a skipped upload or an unsigned form can send everything back to square one. These delays frustrate clients, slow down your team, and increase the risk of errors when staff are rushing to catch up. When documentation lives in too many places or lacks structure, even the most organized teams struggle to keep things moving.

How To Prevent This:

• Use checklists that mirror your account opening process
• Standardize forms with required fields and automated prompts
• Build workflows that make each required document visible and trackable

2. Manual Data Entry Mistakes

Even small mistakes create big problems. When advisors or staff retype client details under time pressure, typos are inevitable. A misspelled name or transposed account number can halt onboarding and require clients to repeat steps they thought were finished. These errors chip away at client trust and force your team into unnecessary clean-up work.

How To Prevent This:

• Use integrations that let your team pull existing client data into forms
• Prefill information wherever possible to avoid duplicate entry
• Assign review steps that give team members a chance to catch errors early

3. Non-Compliance With Regulations

Account opening must meet strict regulatory standards. From identity verification to disclosures and documentation requirements, even one missed compliance detail can lead to costly delays or broader issues. Without built-in checks, firms rely on team memory, outdated documents or inconsistent interpretation of requirements. That increases risk and slows down onboarding.

How To Prevent This:

• Include compliance checks as part of the standard workflow
• Review and update your processes regularly as rules evolve
• Assign responsibility to roles with clear ownership of each step

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.