What is a Compliance Function?

Compliance is an ambivalent function. On the one hand you are considered as the regulators’ ally inside the firm; overseeing the implementation of their regulation. Conversely, you are paid by the company and part of their culture and hierarchy. You might say ‘front office’ (traders making the money) looks at compliance the way compliance successively sees the regulator.

The problem with most companies, whether they be IFAs, Stockbrokers, Payment Services or whatever sector, is that the Compliance Officer is treated unfairly, if they are running the compliance function as part of their job. Whether they are advising, trading or operate the financial side of the business, unlike 10 or perhaps 5 years ago, there is far too much to get done, to satisfy the criteria of the regulatory authorities.

Obviously there are 5 main options with any compliance function;

• You can continue as normal and let things get slowly further and further behind; not a great option, running the gauntlet of “not” being visited.
• You can devote more time to the compliance aspect, rejig the annual compliance monitoring plan and enlist others in order to help; but you will have to supervise their efforts and if they are not “compliance” people, it may be a lot more work than you save.
• Engage some of the many consultancies that are either big 5 or quasi big 5, made successful by all the mis-selling of yesteryear and not necessarily focused on your sort of business. These guys usually want a big chunk of profits to be “available” and provide ongoing support.
• You can recruit a compliance manager (or team) to carry out the main bodies of work required, and have regular meetings to ensure they are staying on top of everything. This is expensive with all the rights of employees and the fringe benefits.
• The final option is to engage with a particular niche consultancy that only provided experienced and qualified consultants in order to help you fit in all the compliance obligations and maintain your day job. Not the cheapest option, but a scholar would never confuse cost with price.

Compliance Consultant offers various support packages that can be managed on-site or remotely (depending on your needs), or a mixture of both. Experienced and professionally qualified people that can be as flexible as you need, with the goal of providing you with the best compliance function possible, with regular reports by email of the work they have planned, work that they have undertaken and any challenges identified along the way.

Lee Werrell Chartered FCSI
Compliance Doctor
Making Compliance Work.
0800 689 0190