Global regulatory reform and innovation in the financial services sector continues to escalate. As a result, the compliance function has gained important significance within financial institutions. This has led to an increasing demand for highly-trained and well-qualified professionals for this function. These global regulatory reforms have had an impact on the compliance industry in several ways.
Firstly, the requirement for compliance officers with cross-border knowledge becomes more critical. Those professionals not only have to be master of their craft, but they also have to increasingly inculcate the culture of ethics and compliance within the organisation. Compliance practitioners need to work closely with Board and Management to build compliance frameworks and systems that balance ﬁnancial innovation with effective risk management. They will need to continue to take on the strategic role of asking tough questions to address such issues, as well as cascade this to the operational level to ensure that each and every staff member is playing his/her part to protect the larger system. Technology has also transformed the ﬁnancial services industry. This adds yet another dimension to the job of compliance ofﬁcers. They have to understand and keep up with the pace of technological innovation within the organisation so that they can assess the resulting impact on risk management and compliance requirements. With these trends, the responsibilities of compliance practitioners has increased tremendously. It is critical to have practitioners with the right compliance and risk management skill sets.
We can identify four strong movements on the market:
– Business and regulatory pressures driving the market
– The Compliance position is becoming core in financial institutions
– Training is becoming increasingly important
– Compliance becoming more of a specialisation