Regulations & Compliance
The globalisation of the financial markets has resulted in a need for common regulatory practices, which require organisations to improve their practices and comply with the new legislations. The increased focus on corporate governance and internal control create stricter demands on an organisation's compliance, internal audit, and risk control functions. Regulatory compliance has become more important for strategic planning and decision making as the use of risk sensitive methods increases as a result of new legislation.
The legislative requirements encourage banks and institutes to use sophisticated tools and techniques for identifying, measuring, monitoring, and reporting risks more effectively. Therefore, statistical methods as well as process and organisational changes have to be addressed.
Crescore has extensive knowledge and broad experience in regulatory, process, and organisational changes with core competencies within the following areas:
- Basel II
- Solvency II
- MiFID (Markets in Financial Instruments Directive)
- AML (Anti-Money Laundering)
- SEPA (Single Euro Payments Area)
The word "compliance" describes the act of behaving in accordance with the prevailing law. Compliance must ensure that the customer - financial institute - employee relationship is fostered in a climate of fairness, solidarity, and mutual trust. It also prevents clashes of interest and guarantees observance of the law.
Banks and other financial institutes have Compliance departments responsible for coordinating the framework of rules. These departments need to communicate these rules to ensure that all employees become aware of them. Furthermore, the Compliance department (together with each department head) is responsible for ensuring that appropriate controls are in place. MiFID clearly points out compliance as the function responsible for monitoring.
Crescore has experienced consultants when it comes to establishing compliance functions with related documentation and procedures including monitoring and controls.