STEERING REGULATORY COMPLIANCE
As with other terminology in this era of dynamic regulatory change, we are seeing an increase in references to ‘regulatory compliance’ as a formal programme in the context of compliance management systems. The topic is also fast becoming recognised as a top risk of many financial institutions. Regulatory compliance brings an additional dimension to the more conventional compliance areas and is not confined by sector or jurisdiction. Simply put, regulatory compliance is the adherence to regulations that apply to an organisation. Conceptually this is neither new nor novel; perhaps because the notion of having to satisfy regulatory obligations was always a given and rather unassuming as a concept, it may have paled in comparison to the more publicised areas of anti-money laundering (AML) and economic sanctions. Yet when we consider the fundamentals, regulatory compliance lies at the heart of any compliance programme and contributes to active risk management. It warrants having a structured, multifunctional approach with a methodology toward assessing the operational, financial, reputational and strategic impact of a legal or regulatory development, enabling clear ownership and functional responsibility, complemented by a robust implementation tracking mechanism.
Regulatory compliance encompasses the timely adherence to laws and regulations issued by governments and relevant regulatory bodies that apply to an organisation. Depending on the maturity of an organisation’s regulatory compliance programme, this may extend further to consider guidelines and best practices issued by industry bodies and associations, and even case law. It cuts across not only functional areas within an organisation, such as human resources or tax, but also across jurisdictions depending on the organisation’s operating model and global footprint.
Apr-Jun 2024 Issue
Allianz Global Corporate and Specialty SE