Chapter 2 - Non Compliance by Individuals and Business Development

Question 1

What are the methods for monitoring individual’s compliance with regulations and internal policies?

Answer 1

1. Regular performance appraisals
2. Quality checking/assurance
3. Exception and error reporting - can be helped with automated systems.
4. Periodic testing - refresher training and testing
5. Self-certification by the individual - sign a self declaration that policies have been understood.
6. Audit trails - records and audit trails demonstrating compliance.
7. Training and development
8. Internal disciplinary
9. External regulatory sanction
10. Legal avenues

Question 2

What are the 5 key aspects to the role compliance plays in the development of new business?

Answer 2

1. Due diligence
2. Risk Assessment
3. Scope of regulation
4. Highlighting material changes in the nature of existing relationships
5. Assessing and reporting potential reputational risks

Question 3

How might compliance be integrated into the business development process in larger firms?

Answer 3

There may be written guidelines for new product initiatives that indicate compliance being involved in the development process.