Regulatory requirements set by the government and industry bodies have to be continually monitored to ensure an organisation is fully complying with them. It can also be used to check that internal policies are being followed correctly.
What is meant by compliance monitoring?
Compliance monitoring is essentially a continuous assessment which helps companies meet specific standards and avoid any areas of non-compliance. It is an essential part of many organisations’ management systems, as a failure to comply can lead to severe consequences. In the UK, most regulators require firms to have compliance monitoring. One example is the Financial Conduct Authority, which insists firms have it in place before they are approved.
How do you do it?
There are no set standards, so each organisation has to put its own compliance monitoring system in place. Some choose to do internal monitoring, while others get third-party providers to do it. The FCA recommends choosing a provider which gives an appropriate level of service. If your firm needs advice, FCA compliance consultants can advise on the best way forward.
Benefits of using third-party providers
As experts in compliance, third-party FCA compliance consultants will be able to streamline your compliance management process through the use of relevant software, doing risk assessments and developing a comprehensive policy.
Compliance is extremely complex, and as failure to comply can lead to legal issues and large fines, it’s worth investing in a robust system which can effectively manage these risks. As well as protecting the organisation, it also builds confidence and trust with external stakeholders.
