often been asked to comment on compliance issues arising from proposed or
current activities of customers in the financial services industry. In many cases, I believe that an independent compliance
review is recommended to help identify and manage both operational and compliance
My own expertise is not in the compliance area - as a marketer some of my past colleagues would give me some good-natured ribbing about promoting compliance. Yet best practice in compliance is also, usually, best practice in marketing. So while I do not handle compliance reviews directly - at Chatswood we have associates in this field and will work with you to deliver the right form of compliance project.
This is an example of a response from a client to the review process:
know the extent of the resource and knowledge available through our employees
and advisers until you interviewed them and recorded the results. You accessed
that for us.”
benefits of an independent compliance review are :
- The requirements of all
stakeholders in the business can be considered with no vested interest
from the consultant in the outcome
- Neutral approach with no
preconceived ideas or “baggage”
- The consultant is focused just on
the review objectives and has the time to “listen.” Management employees
often don’t have time.
- Employees, agents or
representatives talk more freely about issues to an outside consultant
endorsed by management than to management
- Management don’t necessarily have
the breadth or depth of knowledge or skill to complete the review
focus of the review is to identify those risks that, if they occur, will result
in an unacceptable outcome and to then select and implement solutions to reduce
such risks to an acceptable level.
of compliance risk is focused on possible breaches of law, statutory
regulation, local body regulation, profession or industry requirements
(mandatory or voluntary), failure to follow internal policies and procedures,
or failure to meet the expectations of stakeholders.
can arise from customers, suppliers, staff, agents, representatives,
regulators, non-associated persons or uncontrollable events. Types of risk assessed may include fraud,
theft, misrepresentation, error, lack of care, lack or knowledge or possible
can result in financial loss, regulatory penalties, reputation damage, loss of
customers or revenue, loss of staff and, worst case, loss of the business (e.g.
Arthur Anderson, Access Brokerage)
compliance review will:
- Identify the source, size and type of risks
- Determine an acceptable level of risk
- Set priorities to reduce unacceptable risks
- Establish a plan to address the risks
- Manage implementation of the planned solutions to reduce risk
- Introduce ongoing monitoring and reporting of risks
- Develop procedures to manage risk events when they occur
reviews can be large or small- there is no one size fits all approach. We would work with you to establish the scope
of your project.
company and distribution network has compliance risks. To explore a route for managing them
effectively, please contact me, email@example.com