Investment management compliance: The dawn of a new era?

Abstract

The expectations of investors, regulators, and indeed management towards the compliance department are changing. For compliance to evolve, management must review its current operations and align its processes more closely with the desires and needs of the stakeholders. With regulators pushing firms to adopt a risk‐based approach to compliance, a greater degree of real‐time performance monitoring will be required. All of the stakeholders will desire more detailed reporting that an organization’s operations are being conducted in accordance with its regulatory and other obligations. The necessity to comply with a wider variety of controls suggests that an organization should adopt a common approach to the management of its obligations, which in turn may lead to a greater convergence among compliance, risk management, and corporate governance methodologies. The organization should ensure that all of those charged with development of control mechanisms are operating to a consistent standard and then separate the compliance function into three separate parts: (1) business as usual monitoring; (2) forward planning for new regulatory initiatives, products, markets, or client groups; and (3) education and embedding compliance within business units.

Citation

Turner, R. and Di Florio, C. (2004), "Investment management compliance: The dawn of a new era?", Journal of Investment Compliance, Vol. 4 No. 4, pp. 49-53. https://doi.org/10.1108/15285810310813275