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Effective Compliance Requires Robust Monitoring

27 July 2021

An effective compliance monitoring programme is the best way to stay on top of regulatory requirements, experts from BDO Guernsey’s regulatory and consulting team, BDO Advisory, have said.

BDO’s advisory directors Amanda de Carteret, Dawn Sealey and Paul Robinson recently delivered an interactive training session for compliance professionals that outlined the steps to create an effective compliance monitoring programme, the benefits of monitoring, good practice and common failings, as well as upcoming regulatory changes.

The challenge to designing and implementing a compliance monitoring programme is the significant resource, time and commitment required, those on the course heard.  But the importance of ensuring compliance with regulatory obligations on an ongoing basis means it is vital for monitoring to form a significant part of a firm’s risk management framework.

Amanda de Carteret suggests “the key objective of monitoring compliance is to focus a firm’s finite resources on the areas that present the greatest perceived risk of non-compliance, identify weaknesses to effectively enable timely action and improve controls to reduce harm”.

“Having a robust approach to compliance monitoring supports good corporate governance and ultimately can enable the Board of a business to take action to reduce the risk of legal action, regulatory sanctions, financial loss or reputational damage, among other benefits”.

Paul, Amanda and Dawn joined BDO from the GFSC so have significant experience, and their wealth of expertise and knowledge shaped the sessions to provide the most up-to-date training possible, including regulatory updates.

“Ultimately compliance monitoring should be a priority for regulated businesses as it makes good business sense to be compliant with regulatory obligations.  It shouldn’t be an afterthought or a tick-box exercise just because it’s expected by the regulator.”

A second session, delivered on the same day, provided an overview of the GFSC’s risk-based approach to supervision, PRISM.  Attendees learnt about the types of engagement used by the Commission, the way that regulatory returns are incorporated into the GFSC’s analysis, and the importance of ensuring the accuracy of data provided, amongst other areas.

The next training sessions are taking place on 23 September and are open to compliance professionals at all levels. For more information visit our events page.