Given the ever-evolving landscape of financial services regulation, forward planning in compliance management is a necessity. Below are key results that come from good planning and can help you be most effective in managing your firm’s compliance processes.

  • Anticipating Regulatory Changes
  • Enhancing Operational Resilience
  • Improving Resource Allocation
  • Facilitating Strategic Decision-Making

As you know, one of the primary benefits of forward planning is the ability to anticipate and prepare for regulatory changes. Regulatory bodies, such as the UK’s Financial Conduct Authority (FCA), frequently update their rules and guidelines to address emerging risks and market developments. By engaging in forward planning, firms can stay ahead of these changes, ensuring that they have the necessary systems and processes in place to comply with new requirements as they come into effect.

This proactive approach not only helps in maintaining compliance but also ensures that the firm can continue to operate smoothly in the face of unexpected disruptions.

Effective compliance management requires the allocation of appropriate resources, including personnel, technology, and financial investment.

Promoting a Culture of Compliance

Finally, forward planning fosters a culture of compliance within the organisation. By prioritising compliance in strategic planning, firms send a clear message to their employees about the importance of adhering to regulatory standards. This cultural shift encourages employees to take ownership of compliance responsibilities and promotes ethical behaviour across the organisation.

 

Ongoing Compliance on the Back of Regulatory Developments

The UK financial services sector frequently experiences regulatory developments, enhancements to existing guidelines or introduction of new rules. These changes are designed to address emerging risks, enhance consumer protection, and promote market integrity. Below are a handful of areas where you can expect additional scrutiny from the regulator, these present potential areas for future planning efforts:

  • Operational Resilience Framework: The business impact tolerance framework for operational resilience, which has been in development from 2022 to 2025, will be fully implemented. Firms will need to demonstrate their ability to withstand and recover from operational disruptions, ensuring continuity of critical services.
  • Consumer Duty Implementation: The Consumer Duty, which has been a focus from 2022 to 2024, will continue to be a significant regulatory priority. Firms will need to ensure they are delivering good outcomes for consumers, with a focus on transparency, fairness, and customer support.
  • Diversity and Inclusion Initiatives: Following proposals outlined in CP23/20, there will be measures to improve diversity and inclusion within financial services firms. This includes incorporating non-financial misconduct into Fit and Proper assessments and enhancing the Conduct Rules.
  • Sustainability and ESG Regulations: The FCA’s Sustainability Disclosure and investment labelling regime will continue to evolve, aligning with international standards to promote sustainable finance and investment practices.

How are you monitoring and testing your compliance programme or processes?

Policies created to address the above should now be in some form of implementation and periodically tested to ensure they are fit for purpose. Testing your compliance processes identifies opportunities for further training, or changes to policies and procedures.

 

Conclusion

As the regulatory landscape continues to evolve, forward planning will remain a critical tool for firms seeking to maintain compliance and achieve long-term success.

ComplyPortal’s Approach

Implementation of ComplyPortal revolves around the strategic mapping of Compliance Operations. With a clear overview of compliance requirements spread over a period of time this provides the opportunity to ensure all tasks are manageable. ComplyPortal helps you to manage and stay ahead of compliance related tasks so that you can proactively manage risk. Customise your compliance monitoring program to ensure it meets your firms’ requirements whilst ensuring task completion is sensibly spread and manageable. This approach of forward planning prevents compliance officers and SMF holders from becoming overwhelmed and ensures all organisation members adhere to a clear compliance structure.

If you are interested in planning for the year ahead and beyond and want to do so in a way that will benefit your organisation and its members, book a demo to see how ComplyPortal can help you develop your monitoring and reporting program to the frontier of compliance.

Book your complimentary demo today!

Find out more about how the ComplyPortal platform can help firms adapt to new regulatory expectations at: https://complyportal.uk/modules/

About ComplyPortal:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring. 

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others: 

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes.
  • Approvals: authorise request and keep track of workflows
  • Registers: lists controlled by the Compliance officer, but easy for staff to view.
  • Risk: map and control risk areas to effectively identify and manage risk for your firm.
  • Training: access our LMS platform for all Compliance and Governance Training

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