Director
In this video, Jodie explains what a compliance regulatory framework is and the factors that should be taken into account when creating such a framework. She further explains how to maintain it to ensure it remains effective for a business and its stakeholders.
In this video, Jodie explains what a compliance regulatory framework is and the factors that should be taken into account when creating such a framework. She further explains how to maintain it to ensure it remains effective for a business and its stakeholders.
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15 mins 26 secs
A compliance framework is a structured set of guidelines and best practices that details a firm’s processes for how it meets regulatory requirements.
A firm will need to consider the following when building a compliance framework:
Understand its basic and fundamental regulatory requirement and business activities
Scope how the business is to achieve its regulatory requirements through the business model and governance arrangements.
Maintenance of the framework through monitoring, updates and staff training.
Key learning objectives:
What is a Compliance Framework?
Scoping a Compliance Framework
Maintaining a Compliance Framework
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It is essential a firm complies, and demonstrates compliance, with all legal and regulatory requirements affecting it business. A compliance framework should seek to demonstrate how the firms manages its compliance arrangements.
A regulatory compliance framework is usually determined by two factors:
Each of these will change over time and the Compliance Framework will need to be amended to reflect those changes.
It is essential for the firm to have a clear understanding of the regulatory requirements that it must adhere to such as:
First step in creating the compliance framework is to gather information to understand the business and it’s regulatory requirements to identify risks. The identified risks will need to be managed, monitored and reported Senior Management with adequate oversight.
As a starting point the firm should:
To ensure a framework remains effective and robust it will require testing and updating where necessary. This can be achieved through:
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