The Changing Face of Compliance

With the ‘Edinburgh Reforms’, ‘The New Consumer Duty’ and the development of Cryptocurrencies that are ‘acceptable’ to the Bank of England, regulations are changing. But what should the compliance function in an organisation be doing to prepare for these?

This article suggests that reconsidering the role of Compliance is not only necessary but is vital in meeting the regulator’s new expectations. It will look at the planned regulatory changes over the coming years, as well as how firms can best use existing resource to support their business.

Business As Usual?

Regulations change. Every day there are consultation papers, press releases and speeches to read through.

Project teams are formed, and long discussions begin with IT about how difficult we make their lives, and how many contractors they’ll need to change a 5-day cooling off period to a 6-day one.

There will be awareness sessions and training packages and jobs created and destroyed.
These are things that affect staff and companies directly, with the emotional impact that goes along with them.

For the actual compliance teams, not so much. A new line on the risk register, another box to tick. They might get invited to the odd project meeting, but not the one with the bacon rolls and coffee.
Too harsh? For some, definitely.

If this is the attitude a firm takes to compliance, it’s not only behind the curve, but it is at real risk of missing new business opportunities as well as falling foul of the regulator. Compliance as a concept is changing, and its practitioners need to be ready to do the same.

Changes are Coming

The last few years have been hard on Compliance, and the risk teams in general. There’s been the difficulties of monitoring home working, often using business continuity plans that were expected to see the organisation through a few weeks at most- A general move to a hybrid workforce throughout the sector, staff shortages and training difficulties.

Factor in data protection worries when sales staff might be working in a bedroom, or confidential Board decisions are taken siting round half a dozen dining room tables, and the perception of risk has to change.

If we are honest, Compliance has been in a ‘reactive’ mode. it firefights, it’s not been planning. Incomplete Compliance Monitoring Plans have been filled in where it’s been possible to do so, but we are starting to run out of excuses there.

It does seem that the coming year (or two) will hit a reset swich on regulation and the machinery of compliance. (…)

The full version of the article includes more information on:

• The New Consumer Duty
• Environmental, Social & Corporate Governance (ESG)
• The Edinburgh Reforms
• Compliance Maturity
• Conclusion (and Feedback Loops)

Sign up for free to continue reading this Article published in the Advice Matters Magazine – 2023 | Edition 01

Interested in this topic?

• Download our free Consumer Duty Guide – Key Steps for 2023.
• Watch on-demand webinar “Are You Ready for the New Consumer Duty?” recorded on 03 November 2022
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Source: Article “The Changing Face of Compliance” was written by The ZISHI Cornerstone experts, and published in the Advice Matters Magazine | 2023 | Vol 01 | Edition 01