This paper
examines aspects of the role of the compliance department and the compliance officer,
in the context of a range of control functions, in firms subject to financial services
regulation. The issues and recommendations have global application beyond the
UK. The traditional expectation is that the compliance operation advises senior
management on the various regulations, and monitors and report adherence to
regulatory requirements. However, this paper proposes that the compliance
function needs to go further and venture beyond what some may consider its more
conventional roles. Additionally, this paper questions the extent boards and
regulators can place reliance on the compliance functions and the compliance
officer. This will depend on a number of factors including the compliance units’
‘authority’ within the business, their professionalism, and their ethical attitudes
set within the context of the firm’s own cultures.