New report explores potential compliance challenges and how they could be addressed.
The Association for Financial Markets in Europe (AFME) and EY have today published a new report considering the role of the compliance function within wholesale investment banks and the potential challenges and changes it faces in its structure and approach.
The report, entitled “The Scope and Evolution of Compliance” outlines the key considerations for banks’ compliance functions as they seek to adjust and enhance their roles in response to the changing nature of the business and regulatory expectations.
James Kemp, a Managing Director at AFME, said: “Against a backdrop of significant regulatory change and conduct issues, expectations for compliance functions have never been higher.Where previously advising on regulatory requirements and monitoring adherence to company policies formed the core of a Compliance Officer’s role, teams are also increasingly expected to take a more strategic and proactive role in anticipating and managing risk. The compliance function needs to be able to evolve and adapt in response to these changes and this report sets out the possible active steps that banks can take to do so.”
Stuart Crotaz, Financial Services Partner at EY, said: “The message from the market is clear – it has never been a more challenging time to be in compliance. Yet this also brings opportunity as boards and regulators increasingly promote the need for a forward-looking compliance team who can provide a broader view on the management of regulatory risk in an increasingly technological world. The speed of that change and the increasing importance of data and analytics means that compliance needs to keep evolving.”
Challenges currently facing compliance teams are driven by:
To address these challenges, the report discusses possible resources and models for compliance.
Click here to download the full report.
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