Role of a Compliance Officer

What is the role of the compliance officer?

For a Compliance Officer, every day involves ensuring that the firms compliance framework/ programme is embedded within the firm. The Senior Management are responsible for setting the tone for how firm does business.  We have often heard the phrase ‘Tone at the Top’. The term is used to describe the ethical climate as set by its Board Members and Senior Management. A compliance officer’s daily and critical role is assisting the Board and Senior Managers in setting and reinforcing the tone at the top throughout the business. In essence the Compliance Officer is also the firm’s tone/culture ambassador. 

What is the impact of the FCA’s SMCR regime?

Since the introduction of the regime in March 2016 the role of the compliance officer has become ever more important due to the aspect of the personal accountability that allows the regulator to hold individual to account. 

A compliance Officer with SMF 16 permission is accountable and responsible for the compliance function in the firm and reporting to the governing body. 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.  

The SMCR brought with it Conduct Rules which apply to all staff with a firm and further second tier of conduct rules that apply to Senior Managers. 

The regime and its rules further assist the Compliance Officer in raising the standards of conduct and making compliance everyone’s business. 

What are the day to day duties of a compliance officer?

Day to day duties vary significantly with compliance touching on every aspect of the firm, but they usually fit within five distinct headings:

• Advisory work e.g. in relation to regulatory developments.
• Policy  - e.g. Ensuring the business has adequate and appropriate policies in place.
• Monitoring/ Second Line- e.g. maintaining and carrying out the compliance plan monitoring programme.  
• Stakeholder Management – e.g.  Liaising  with other control and risk departments and coordinating  work within these departments
• Reporting e.g. providing regular and accurate information to management, the Board and relevant Board Committees, such as the
• Audit Committee, in the form of management information and/or board reports, raising significant issues, breaches and concerns.