If you’re responsible for compliance in your company, you know it can be a daunting task. There are so many things to keep track of, and if one aspect of your compliance program isn’t up to scratch, you could face serious penalties. In this blog post, we’ll discuss some tips and strategies for making your compliance program more effective. We’ll also take a look at the benefits of outsourcing your compliance function to an expert Isle of Man compliance provider.
Tip 1 – Establish clear compliance procedures
The first step in ensuring an effective compliance program is to establish clear procedures for all to follow. These procedures should be documented and communicated to all employees, so there is no confusion about what is expected of them.
Compliance should be viewed as a positive support function of the business, not a hindrance. No matter how large or small your business, everyone needs to be on the same page with the approach.
Tip 2 Assign responsibility for compliance
Once clear procedures are established, it’s important to assign responsibility for compliance to a specific individual or team.
Responsibility for compliance is not something to be taken lightly. With civil penalties now a reality, it’s a responsibility many don’t want.
Good compliance professionals are in high demand. Recruiting and retaining the right staff is challenging in this environment.
Outsourcing your compliance function can be an effective way to ensure your program is run cost efficiently and effectively, bringing benefit to all. Including a great night’s sleep!
Tip 3 – Implement a system of checks
To ensure that your compliance program is effective, you need to put in place a system of checks. This could involve regular audits of your procedures, or spot checks to ensure that they are being followed.
It could also include a health check carried out by an external compliance consultant. The results from a health check can be invaluable in preparing your business for a visit from the Isle of Man FSA, acting as a mock review.
Tip 4 – Nurture a supportive Compliance Culture
It is very important that a company has a good compliance culture. A culture of compliance starts with an organisation that is true to its mission and core values, where senior managers lead the way by expressing their commitment to compliance policies and encourage open communication and honest feedback.
It is also important to have a system in place for reporting any issues that arise. This could be through an anonymous hotline, or through more formal channels
Whatever system you put in place, it’s important that it is well publicised and that employees feel confident they won’t face retribution for raising concerns.
We strive to achieve a supportive compliance culture for all our clients, and it pays dividends.
Tip 5 – Periodically review and update the compliance procedures and protocols.
Outsourcing your compliance function is an effective way to ensure your business is up to date with the latest regulatory changes.
However, it is important to remember that you are ultimately responsible for ensuring that your business remains compliant. Outsourcing does not absolve you of this responsibility.
Periodically review your outsourcing arrangements to ensure they are still fit for purpose and that you are happy with the service you are receiving.
The Isle of Man FSA provide guidance on outsourcing compliance and delegation of functions. Look out for the link at the end of this blog.
We provide businesses with a robust framework for effectively reviewing procedures and ensuring compliance. This can include annual training requirements, an essential part of any compliance program.
Tip 6 – Respond quickly to any issues or concerns that arise
Be proactive in addressing any problems that come to light, rather than sweeping them under the carpet. Not only is this the morally right thing to do, but it will also help to protect your business from potential legal action further down the line.
The Isle of Man FSA also view swift action favourably.
Tip 7 – Maintain records of all compliance-related activity
It is important to maintain accurate and up-to-date records of everything related to compliance. From employee training records to minutes of meetings. This provide an audit trail in the event of any problems and will help to identify any areas where procedures need to be improved.
If you outsource your compliance function, make sure that you have a clear and concise contract in place that sets out the obligations of both parties. This will help to avoid any misunderstandings further down the line.
By following these simple tips, you can ensure that your compliance program is fit for purpose and will protect your business from any potential legal problems.
Tip 8 – Let the experts do the heavy lifting
Wouldn’t it be a relief to go into your regulatory assessments feeling confident that your business is well prepared and in a state of good regulatory health?
Through our health checks, this is possible. They enable you and your compliance team to be proactive around your policies, systems and frameworks rather than reactive following regulator feedback or scrutiny.
Regulatory compliance in today’s landscape is increasingly complex. This is particularly true if your business is multi-jurisdictional. Without regular maintenance, time and resources, your compliance function will degrade.
The demands from regulators and the risk of enforcement action are also increasing. The penalties for compliance failures are becoming increasingly common and detrimental– not only through financial penalties but also from a reputational standpoint.
There are some key questions to ask in regard to your compliance procedures:
- Is your compliance framework up to scratch?
- Could improvements be made?
- Is your business adhering to their licence and regulatory requirements? If not, why not?
We are your expert outsourced compliance solution – here to support you in this ever-changing landscape. If you need support, here’s how you can get in touch:
- Call us on 01624 820601
- Email us on [email protected]
- Book your complimentary compliance consultation straight into the diary here.
We promised you a link to the Isle of Man FSA guidance on outsourcing of compliance and delegation of functions. It’s here – https://www.iomfsa.im/media/1541/guidancenoteonoutsourcing2012.pdf
