How to help compliance teams manage regulatory change

Nov 29th '16

The helpful people at Thomson Reuters have produced an excellent infographic showing how Compliance teams can best manage regulatory change.

The infographic details the five steps needed for success in managing the fast-changing legislative environment.

Here we look at each step and give advice on how firms can tackle the governance challenges they face.

  • Maintain awareness of the regulatory landscape

A must for any Compliance team. The pace of new legislation and updates to existing requirements has never been faster. Keeping on top of what’s expected of you is the first step if you want to stay on the right side of the FCA.

You can learn a lot about the Authority’s plans and priorities from its Annual Report, its Business Plan and its news announcements – its new ‘Future Mission’, for example, recently set out planned changes to the way it regulates.

  • Identify impacted internal policies and procedures

In other words, quickly get a grasp of how any changes affect your business. Identify any shortfalls in your own policies and act fast to fill the gaps.

Communicate any new requirements to your business speedily and in a way that will engage your teams – whether Operations, Marketing, Sales or other parts of your firm. Make it clear what people need to do differently and how you can help them.

  • Carry out regulatory development and impact assessments

Make sure your priorities and actions are in line with the changes needed. Who is responsible for identifying areas where your policies or approach need to change? Make accountabilities clear and make it easy for people to do what’s needed.

  • Test your policy framework and audit controls

Meeting governance requirements isn’t just about the end result. The way you carry out your tasks can be equally important when it comes to getting the thumbs up.

This blog on financial promotions record keeping has some good tips on how to comply with the ‘back office’ aspects of marketing and communications. And you can learn more about what the Regulator is looking for in a compliant firm from the FCA thematic review.

  • Report to senior management, the board and supervisors

The way you report that you are compliant with legislation requirements is vital. Your board and leadership need clear and detailed information on how your firm is meeting its obligations.

The FCA will need to see that good governance is embedded into your corporate culture and processes (read this blog on 5 ways to embed a compliance culture into your business for some good advice on how to achieve this).

Automated workflow systems that deliver in-built management information can help here.

They make reporting a one-click operation. And the assurance they can give that correct processes have been followed can be invaluable in evidencing a compliant approach.

If you want to find out how automated solutions can help you keep up with the pace of regulatory change, you will be interested this whitepaper on the benefits of automated workflows for Compliance teams.  It details how you can:

  • Put compliance approval at the heart of your processes
  • Reduce the risk of breaching regulations and internal rules
  • Improve efficiency and transparency
  • Enforce compliant procedures
  • Become ‘audit-ready’ via approved storage and retrieval processes

The whitepaper is free and you can get a copy here.

Source: Perivan Solutions

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