A GlobeRisk Perspective on Regulation and Compliance
GlobeRisk defines Compliance to be “have we complied with our interpretation of the rules”
GlobeRisk defines Regulatory Risk Management to be:
- What external rules are important to us?
- How do we want to interpret them?
- What is our policy/objective in relation to the rules (e.g. the spectrum between - do not break a rule in any circumstance to it’s alright if we don’t get caught)?
- Design and implementation of the framework required to ensure that the firms regulatory objectives will be met
- Resolving historical issues
- Learning lessons from historical issues and incorporating them into the regulatory risk management framework
Regulatory Risk and Compliance are becoming increasingly important in European financial markets where regulators are showing an increasing tendency to consider retrospective re interpretation of rules when significant numbers of consumers are adversely affected.
In the UK Regulation and Compliance splits into two distinct areas
- COB, or Conduct of Business, which sets out the basis on which a firm may interact with customers, especially non market professionals
- SYSC, Systems of Control, which set out the framework for internal control within a regulated firm
GlobeRisk Regulatory Risk and Compliance Services
In 2007 GlobeRisk can offer the following services:
- Design and implementation of firmwide operating models and governance frameworks
- Effectiveness reviews of Regulatory Risk and Compliance teams, with particular consideration of right sizing and value added
- Forensic investigations of historical issues