31 March 2019
RICHARD RATTUE Managing Director, Compli-Serve
LEGISLATION & COMPLIANCE FEATURE
DIY not always simple for compliance
T
he financial services industry is changing keep the doors open, let alone tackle reams of rapidly – from the impact of technology compliance requirements. (and, subsequently, FinTech and RegTech becoming more commonplace), to the overhaul Should you DIY? of the industry through COFI coming in, the Being tempted to keep administrative costs down potential impact of the RDR and a general move by trying to do compliance yourself does present away from simply ticking boxes. some danger, particularly as big changes are Financial advisory practices face a myriad ahead in the industry. If something slips through of compliance requirements in addition to the the cracks, the financial impact on your business various financial legislations governing their could be detrimental, with costly fines that the businesses (or those still to FSCA could levy on your business come). Being confronted for non-fulfilment of an obligation MAKING USE OF with a list of different imposed by law. deadlines, reporting To be aware of new and everAN EXTERNAL requirements, as well as changing legislation, as well as COMPLIANCE a host of administrative understanding the impact of PRACTICE COULD obligations, can be any changes, is onerous on a overwhelming to manage. small business. Missing updated ADDRESS THE For smaller practices, amendments or conduct standards COMPLIANCE or those consisting of places a business at risk, where RESPONSIBILITIES in the worst-case scenario, your a single key individual, staying compliant can licence could be lost. Receiving BUSINESSES FACE be very challenging. On penalties also puts your reputation any given day, it can be demanding to make at risk through negative publicity – all of which time to see numerous clients, run the business could easily be avoided by seeking professional operationally, and make enough money to compliance support.
Peace of mind meets professionalism Making use of an external compliance practice could address the compliance responsibilities businesses face. Compliance officers are professionals equipped to focus on what needs to be done to stay compliant; they should be aware of all the pertinent reporting obligations and due dates, and endeavour to ensure they, and their clients, are informed on relevant industry and legislative changes. There are of course numerous aspects to running a business successfully over and above staying compliant – from adequate IT and data solutions, to sufficient insurance cover and working capital. But with so many elements to consider in financial services regulation, having a strong compliance resource and support in place can certainly help to remove some business risk and stress.
It pays to be working with a prepared team.
FINANCIAL SERVICES PROFESSIONALS www.compliserve.co.za / 0861 273783 / info@compliserve.co.za
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