The importance of a compliance culture in financial services

Financial services regulators place significant focus on the culture of the firms they supervise. They want to see a healthy compliance culture, where business is done in the right way, bringing about positive outcomes for customers.

A strong compliance culture also brings about the right outcomes for firms.

Here are four key points to share across your firm. A PDF version can be downloaded here.

• Professionalism: Being compliant with the regulations and supporting codes leads to professional business interactions which demonstrate the firm’s commitment to fairness and ethics to all stakeholders (including clients, suppliers and colleagues).
• Protection: This approach means that business dealings are transparent, and that clients receive appropriate protection. Firms are also better protected from fraudsters and other criminals, such as money launderers and terrorist financiers.
• Reputation: Professionalism and protection build a stronger reputation. As a result, the firm attracts the best talent and the right clients. The firm develops trusting and satisfied relationships with its clients, leading to a loyal client-base.

• Value: A reputable firm is more likely to prosper. The firm’s positive compliance culture creates long-term value, as staff understand the risks of non-compliance and take proactive steps to avoid or mitigate potential breaches.