Compliance, Role Changer (Equity & Debt Market )

Corporates are realising the business and operational value; if it’s not aligned properly the Corporation crashes like a tumbling card. Corporate Houses who have big stakes within the market have to have better quality data management; it always augments to the improved customer experience. Business Houses can be derived from anticipating risk and meeting regulatory trants that are the requirement of time. Corporates making compliances an increasingly integrated part of their business and the ¬†Investments they make in the market.

Organisations today are challenged to address a confluence of regulatory and business changes that are putting new demands for compliance and regulations. The pace of regulatory change, convergence in global regulations, and competition from newer markets has given an edge to consumers focus through technology; thus surging demand has created a complex environment for compliance leaders across all industries with compliance now at a tipping point, the role of the chief compliance office has gained more prominence and is evolving rapidly with Forensic Audits and Vetting on place.

Adding to the challenge is the risk of reputational damage and significant financial penalties that frequently accompany compliance failures. Compliances costs and inherent risks have dictated significant changes in products offerings and business operations for some organizations and many are not viewing compliance more are not viewing compliance more like an investment than a cost. Organizations are realizing that business and operational value, such as better quality data and an improved customer experience, can be derived from anticipation risk and meeting regulatory requirements, making compliance and increasingly integrated part of the business investments strategy.

The fact is that the world of regulatory compliance is always evolving with requirements constantly multiplying. To ensure adherence to increasingly stringent rules imposed across multiple jurisdictions, banks and financial services companies need to continually calibrate their compliance management function. New ideas and Forensic mode of working should be promoted internally for big business houses.   

Compliance framework encompasses multiple components that drive prevention, detection and response across the three lines of defence. In a compliance framework, the business process owners are the first line of defence, compliance and centralized risk management functions are the second line of defence, and internal audit is the third line which is the front line of any business house. The heads can fail but the soldiers can’t fail the organisation.

Each line of defence plays an important role in the organisations’ overall compliance framework and governance. The three line of defence model aids organisation in promoting compliance agility, identifying emerging risk, and clarifying the compliance programs strength and weakness.

The organisation should systematically identify its compliance obligations and their implications for its activities, products and services. The organisation should take these obligations into account when establishing developing, implementing, evaluation, maintaining and improving its compliance management system. The organisation should document its compliance obligations in a manner that is appropriate to its size, complexity, structure and operations. The compliance landscape is dynamic. It is critical to continuously monitor the impact of any compliance obligations triggering changes in the internal/ external environment of the business house. In order to keep the inventory comprehensive and updated at all times.

It is difficult to get all the updates under one umbrella and so it is important for every organisation to maintain its own tracker of sources of compliance obligations that are relevant to their industry and business. Some examples of these courses can be monitoring the websites of regulators, being on the mailing list of relevant regulators and membership to Professional Group.

PCS Global believes that Corporate Governance and Compliances are the Keys to success as the Equity and Debt are key components of corporate houses and its checks and balance are not kept in place its a landmine ready to blow any time.

Blogging Team

PEGASUS Corporate Services Global PVT LTD

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