Enhancement of compliance and controls environment has strongly increased in the past few years, as banks have invested considerable time and resources in it. As a result the fines in the financial sector now compared to a few years ago have significantly reduced.
The times of the blockbuster fine in the financial sector may be drawing to a close, however the number of individual prosecutions and fines is likely to grow within the next few years, as regulators and prosecutors focus more and more on risk management functions and any kind of misconduct. Consequently, institutions may struggle to substantiate compliance of exceptional behavior, and the increased individual risk may force the industry to change its compliance protocols. The entry of these new parameters could affect institutional reputation and credibility, and may lead to wonder about the compliance systems efficiency of financial institutions such as banks.
How can financial institutions and their officers find a right compliance-risk balance fostering trust in this situation?
FRA’s founding partners, Toby Duthie and Frances McLeod discuss in The Lawyer steps to take to make institutional changes in bank compliance in order to minimize the risks and protect consumers as well as guard institutional credibility.
Toby Duthie, FRA founding partner
Frances McLeod, FRA founding partner