COMPLIANCE FUNCTIONINFINANCIAL INSTITUTIONS

IFAST financialiFAST FINANCIAL byWong Teck KowCOY REGISTERED NO. 200000231R 2006 FINANCIAL ADVISERS TRANSACTION IN FINANCIAL INSTITUTIONSis increasingly sophisticat-ed. With growing regulatory demands, major financialinstitutions such as banks are devoting substantialresources into COMPLIANCE functions. Surprisingly, there is a lack of intellectual resources oncompliance in Asia. This article aims to bridge that hope to contribute a resource, increase awareness incompliance issues, stimulate interaction amongst financialand COMPLIANCE professionals, and ultimately enhancecompliance standards in the financial industry. Who is Responsible? COMPLIANCE officers seem to be the obvious candidates totake responsibility if things go wrong. But does the buckreally stop there?The prime responsibility to ensure that the business com-plies with regulations rests with the board of directors, orwith the owners or the most senior executive managementgroup where there is no board.

As a cost centre, Compliance needs to justify the costs of compliance against regulatory obligations, devise ways of keeping implementation costs low, and maximizing the benefits of the compliance function. The role of Compliance is summarized in Figure 1. Risk-Based Compliance Approach (1) RATIONALE It is recommended that Compliance adopts a ...

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  Cost, Compliance, Of compliance

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