Make a difference
For too long, organisations have been managing their compliance in isolated silos, only addressing issues after they have already occurred. This outdated approach is not only bound to fail but is also putting organisations at risk.
Most will expect their legal council to solve all the issues without having considered that Law and financial regulations are of a different nature. Financial regulatory frameworks are purposive – outcome based.
For most Firms being “Compliant” is an obligation they would do without if they could, a cost center, and a barrier to entry for smaller firms or start-ups: in one word a real headache!
It’s the last segment of their business they want to spend money on …
It is not the world we are living in anymore !
Since the 2008 economic crisis, fuelled by the near collapse of the financial system, it has been decided to strengthen the oversight framework by requesting Regulators to review the entire regulatory system and introduce entirely revised regulations to better oversee financial institutions, reinforce market stability and strengthen investor protection.
Firms are expected to implement sound, robust and effective arrangements, systems and controls to ensure Regulators objectives are met.
Former U.S. Deputy Attorney General Paul McNully said: “If you think compliance is expensive, try non-compliance“
The costs of non-compliance are soaring*:
- Revenue losses due to heavy fines, lengthy remediation programs and business limitations (e.g., bans imposed by Regulators: on-board new customers, terminate a business line)
- Expensive and time-consuming lawsuits
- Business disruptions
- Reputational damage
- Customers and stakeholders’ loss
- Collaborators loss and difficulties to hire
Given the rising risks and downside of non-compliance and the comparatively low cost of preventive action: Firms can no longer afford to turn a blind eye and opt to do nothing or needlessly delay taking action. They have a fiduciary duty to their shareholders and in a world were ESG is at the forefront of every-one’s minds, justifying inaction will become increasingly difficult!
What can You do?
Be Smart and Think forward !
Deontea Ltd is there to support you every step of the way by:
- Acting as an additional cost effective resource you can lean on when the complexity of regulations are becoming overwhelming
- Supporting you in designing and/or reviewing your systems and controls to ensure not only compliance but foremost effectiveness and interoperability with your operational structure
- Ensuring your regulatory obligations are identified and addressed timely
- Providing you with regulators grade knowledge and expertise to scale and develop your activities domestically or on cross-border basis
Being compliant is not only cost effective but will help you thrive, scale and make a real difference by fostering your client trust and supporting your community.
* In aggregate, between 2008 and 2018, twenty of the world’s leading banks have disbursed in excess of EUR410bn as a consequence of misconduct. For a reminder 150bn of fines result in more than 3 trillion of reduced lending capacity to the real economy. (Source Centre for Banking Research of the University of London)
Fines are up by 45% since 2008 and rising, whilst on average cost of none-compliance is 3 times higher than cost of compliance.