Corporate compliance is essential for firms to function, and investment firms that fail to comply incur heavy penalties and lose their goodwill and reputation. Many look to corporate compliance service providers to ensure adherence.
The five principles of compliance services in the corporate sector are as follows.
- Risk analysis
Non-compliance makes companies vulnerable to risk. A number of issues could prevent an organisations from maintaining compliance, but they would need to know these issues and the risks that could arise due to non-compliance. Most organisations do not have a definite risk analysis strategy and may not be able to identify the problems that prevent compliance. Risk analysis and management are the basic pillars of corporate compliance; this includes not only the business code of conduct, but every business activity related to corporate compliance.
- Understanding the policies
An investment firm should be well versed with the compliance structure in its jurisdiction. This includes awareness on the part not only of its top management, but also of all employees, and it should ensure compliance is integrated into daily business activities.
- Support for compliance
Support for corporate compliance should come from top management through policies and the necessary funds to implement them. A firm does not necessarily have to have in-house compliance experts, but should be aware that there are regulations governing each activity – from press releases to social media content.
Firms could look to corporate compliance service providers with teams of compliance experts who will ensure compliance with local and international laws.
- Training and communication
Effective policy implementation requires communication. Employees must be trained in both internal and external compliance and be made aware of actions that could incur penalties.
- Monitoring and reporting
A compliance framework needs to be monitored at all times and loopholes identified proactively. Top management of an organisation should receive compliance reports from their outsourcing partners or employees.
