Every year, the Kitces Report offers a rare, data-backed glimpse into what independent advisors are really using—and loving—inside their technology stacks. The 2025 edition is no exception. From financial planning platforms to client communication tools, advisor satisfaction is on the rise. Adoption is up. Confidence is growing. The profession is getting sharper about what works.
But behind the headlines and top-rated tools is a category that reveals a quieter truth. A vulnerability hiding in plain sight.
Compliance.
Compliance Isn’t a Tech Problem. It’s a Systems Problem.
At first glance, compliance barely registers in the 2025 Kitces rankings. Most of the energy goes toward the platforms that drive client experience and planning outcomes. And that makes sense—those are the lifeblood of most firms.
But buried deeper in the report is a signal that matters.
According to the data, Smartria leads market share among compliance platforms purpose-built for RIAs and ranks third in advisor satisfaction within the category. That may look like a quiet win. In context, it is a strong indicator that something is shifting.
Compliance is starting to move from afterthought to infrastructure.
Not because advisors suddenly care more about policy language or recordkeeping—but because scaling requires systems. And systems require visibility, automation, and consistency.
RIAs Are Scaling Smarter. Regulators Are Scaling Faster.
The past few years have seen a dramatic increase in RIA complexity. More AUM. More staff. More locations. More regulatory pressure. The average firm now looks more like a small enterprise than a boutique shop.
That complexity creates exposure. And exposure invites scrutiny.
The SEC has made it clear that documentation is not enough. They are no longer satisfied with good intentions or clean policies. They want process. They want defensibility. They want to see proof that what your firm says on paper matches how it operates day to day.
And here’s where the Kitces data adds texture. Many firms are still managing compliance like it is 2010:
- Marketing approvals tracked in email threads
- Employee trade reviews logged in spreadsheets
- Outsourced consultants maintaining oversight via PDFs
- Manual attestations, unmonitored policies, forgotten vendor reviews
These practices are not just inefficient. They are risk multipliers.
Satisfaction Across the Stack Exposes What’s Still Broken
The irony is that advisor satisfaction with most tools is rising. CRMs are better. Planning platforms are more robust. Portfolio tools are easier to use. The experience is improving.
That only makes the friction in compliance more obvious.
Manual, reactive compliance processes feel increasingly out of step with the rest of the tech stack. And that misalignment creates downstream problems that are easy to miss but hard to ignore once surfaced:
- Lost time from scattered systems
- Missed handoffs and unclear accountability
- Staff fatigue from constant follow-ups
- Inconsistent exam readiness across teams or entities
In short, compliance becomes the weakest link in an otherwise modernized operation.
Smartria’s Placement Matters. But the Signal Is Bigger Than Us.
We are proud of where Smartria landed in this year’s report. Leading market share. High advisor satisfaction. But this isn’t about our placement.
The real story is that compliance software is no longer about checking boxes.
Firms are starting to expect more. They are looking for:
- Centralized audit trails
- Embedded oversight workflows
- Real-time role visibility
- Configurable tools that scale as they do
These expectations are not just preferences. They are signs that firms are maturing. And that maturity is reshaping how compliance gets done.
Manual Defense Is Becoming Audit-Ready Offense
There is a mindset shift happening beneath the surface. Firms that once saw compliance as a back-office obligation are beginning to treat it as a performance layer. Something that can drive operational leverage instead of drain it.
Firms that adopt this mindset are reaping the benefits:
- Faster onboarding
- Smoother audits
- Cleaner ADV updates
- Reduced vendor sprawl
- Higher trust with clients and consultants
- Less risk of late-night surprises
And it all starts with reframing what compliance systems are for. Not as reactive protection—but as proactive alignment.
The Next Maturity Benchmark for RIAs
The 2025 Kitces Tech Stack Report shows that advisors are becoming savvier buyers. They are chasing ROI. They are consolidating platforms. They are investing in user experience and integration depth.
But tech maturity isn’t just about planning tools or rebalancers. It is about everything behind the scenes. That includes compliance.
In fact, the more streamlined the rest of the firm becomes, the more exposed compliance gaps become. And in that spotlight, manual workarounds don’t just look clunky—they look risky.
Final Thought: The Firms That Treat Compliance Like Infrastructure Will Win
The real takeaway from the Kitces Report isn’t who came in first in any one category. It is that expectations are rising across the board.
Tech-savvy firms are no longer satisfied with patchwork processes. They are looking for complete systems. And that includes the compliance layer.
Whether you’re leading a multi-office firm or scaling your first operations team, the question is the same.
Is your compliance function keeping pace with the rest of your stack?
If the answer is no, it may be time to modernize.
📣 Ready to close the compliance gap?
Smartria helps RIAs replace fragmented compliance processes with centralized, scalable systems that actually work.
