A Compliance Competence Partnership Approach Model

Wolfe, S. and Edwards, J. (2006) A Compliance Competence Partnership Approach Model. Journal of Financial Regulation and Compliance, 14 (2), 140-150. (doi:10.1108/13581980610659459).

Abstract

Purpose:
Compliance competence is key to the operation and reputation of the financial services sector and is now completely embedded in the way financial services organisations carry on investment business. It is also fundamental to the Financial Services Authority (FSA) in seeking to achieve its regulatory objectives as set out in sections 3-6 of the Financial Services and Markets Act 2000. A great deal has been written on the topic of compliance and competence and the core objective of this paper is to offer a compliance competence model for financial institutions that recognises and highlights the importance of the regulator and the regulated working together as partners.
Design/methodology/approach:
A unique compliance competence partnership approach model, arising from case study research, is proposed and consists of three key elements: good compliance practice, good ethical practice and a positive FSA relationship. The three elements are represented as a tripod with three mainstays that are intrinsically linked. The mainstays are supported by cross-members that consist of underlying and intrinsic issues of compliance competence.
Findings:
The regulator and regulated need to work together in a proactive partnership. Organisation need to formulate a clear ethical policy involving employees from every aspect.
Originality/value:
The partnership approach model, advocated here, would create a real partnership between the FSA and its regulated organisations.

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Contributors

Author: S. Wolfe

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