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This paper, set in the context of a rationale for financial regulation, considers how the Financial Services Authority’s (the regulator) approach to establishing compliance competent organisations in the life assurance sector (the regulated) has evolved from a prescriptive approach to one of cooperation with those regulated, in order to establish a working partnership. It focuses on investment business and the resulting importance of conduct of business regulation. It reviews the regulator’s approach, linking academic theory to existing practice and the progress made in the developing and evolving relationship between the regulator and the regulated. It establishes what steps/phases have already taken place within life assurance companies seeking to incorporate and change their compliance culture. It creates a template for the review of progress in seeking to achieve the regulator’s goal of compliant competent organisations, while identifying the essential elements of the new partnership approach. This approach will not only meet the regulator’s stated aim of improving consumer protection but also benefit life assurance companies themselves.

Compliance competence is key to the operation and reputation of the financial services sector and is now completely embedded in the way financial services organisations carry on investment business. It is also fundamental to the Financial Services Authority (FSA) in seeking to achieve its regulatory objectives as set out in sections 3‐6 of the Financial Services and Markets Act 2000. A great deal has been written on the topic of compliance and competence and the core objective of this paper is to offer a compliance competence model for financial institutions that recognises and highlights the importance of the regulator and the regulated working together as partners.

A unique compliance competence partnership approach model, arising from case study research, is proposed and consists of three key elements: good compliance practice, good ethical practice and a positive FSA relationship. The three elements are represented as a tripod with three mainstays that are intrinsically linked. The mainstays are supported by cross‐members that consist of underlying and intrinsic issues of compliance competence.

The regulator and regulated need to work together in a proactive partnership. Organisation need to formulate a clear ethical policy involving employees from every aspect.

The partnership approach model, advocated here, would create a real partnership between the FSA and its regulated organisations.

Compliance is key to the operation and reputation of the financial services sector and is now completely embedded in the way financial services organisations carry on investment business. It is also fundamental to the Financial Services Authority (FSA) in seeking to achieve its regulatory objectives as set out in SS. 3‐6 of the Financial Services and Markets Act 2000. A great deal has been written on the topic of compliance and the core objective of this paper is to review and comment on the current approach to compliance which has evolved since the introduction of the Financial Services Act 1986. It notes the change of emphasis by the FSA from individual compliance competence to organisational compliance competence. It focuses on conduct of business regulation and highlights the importance of training and competence to compliance and explains how the regulatory approach has been changing from a rules‐based approach to a more flexible ethical one.

The Basel Committee on Banking Supervision under the auspices of the Bank for International Settlements (BIS) published a consultation paper in late 2003 on the compliance function in banks. The aim of the consultation paper is to set out the views of banking supervisors and provide basic guidance for banks. Whereas there is no attempt to prescribe a uniform approach, a clear set of general principles is laid down for the role of the compliance function within banking organisations. Furthermore, recognition is given to the fact that diversity exists between banks with respect to their internal organisation of the compliance function and also to diversity in the legal and regulatory environment affecting the compliance function across jurisdictions. The core objectives of this paper are to examine the BIS approach to the compliance function and look at how this is likely to evolve. The authors draw on experience from the UK life assurance industry where substantial inroads have been made to embed a compliance competent culture within such types of financial institutions. A partnership approach is highlighted as essential to achieving a viable and meaningful compliance function. Finally, an ethical approach is explored as the possible future direction for banks. The first section reviews the new principles for the compliance function; the second section describes issues that arise; the third section analyses a partnership approach and explores an ethical approach; and the final section provides a summary and conclusion.

Fitness service organizations often promote the personal training service by attributing competent features, qualifications, or/and service provision of fitness service providers to efforts or talents. This study aims to investigate whether and when the promotional attribution of fitness service providers' competent features, qualifications, or/and service provision contributes to customers' compliance with service instructions.

The authors developed the experimental stimuli of performance attribution promotion (i.e. effort attribution and talent attribution) and validated them via a pretest (N = 400). Utilizing the validated stimuli, the authors conducted an experiment (N = 400) employing a single-factor (performance attribution promotion: effort vs talent) between-subject design. The authors performed partial least squares structural modeling (PLS-SEM) to test our hypotheses.

The results revealed the interaction effect of performance attribution promotion and customers' implicit mindset on customer participation expectation. Specifically, when customers were high in implicit mindset (i.e. incremental-minded), attributing competent features, qualifications, or/and service provision of fitness service providers to effort (vs talent) increased customer participation expectation. Yet, when customers were low in implicit mindset (i.e. entity-minded), such an effect did not occur. Further, the authors identified customers' intention to comply with service instructions as a downstream consequence of the aforementioned interaction effect.

The contribution of this paper is twofold. It enriches the performance attribution literature by finding its new consequences and boundary condition. Moreover, the findings aid fitness service practitioners in developing strategies for eliciting customers' compliance with service instruction through performance attribution promotion.

This paper considers the meaning of the term ‘compliant competent life assurance companies’, within the current regulatory regime. It defines the terms of competence and compliance in the context of the change of emphasis from individual to corporate compliance competence. It recognises the importance of the introduction of competence within the financial sector and especially the role of the training and competence scheme for individuals, introduced after the Financial Services Act 1986. It considers the Financial Services Authority’s (FSA’s) more expansive interpretation of compliance competence in the context of life assurance companies, following the creation of the single regulator that aims to achieve the stated objectives of the Financial Services and Markets Act (FSMA) 2000. It reviews and critically analyses key issues associated with the FSA’s move towards an ethical framework for financial services.

Information security policies (ISPs) are used by organizations to communicate rules on the use of information systems (IS). Research studies show that compliance with the ISPs is not a straightforward issue and that several factors influence individual behavior toward ISP compliance, such as security awareness or individual perception of security threats. The purpose of this paper is to investigate the competencies associated with users’ ISP compliance behavior.

In order to reveal the competencies that are associated with the users’ ISP compliance behavior, the authors systematically analyze the ISP compliance literature and the authors develop an ISP compliance competency model. The authors then target to explore if IS users are equipped with these competencies; to do so, the authors analyze professional competence models from various industry sectors and compare the competencies that they include with the developed ISP compliance competencies.

The authors identify the competencies associated with ISP compliance and the authors provide evidence on the lack of attention in information security responsibilities demonstrated in professional competence frameworks.

ISP compliance research has focused on identifying the antecedents of ISP compliance behavior. The authors offer an ISP compliance competency model and guide researchers in investigating the issue further by focusing on the professional competencies that are necessary for IS users.

The findings offer new contributions to practitioners by highlighting the lack of attention on the information security responsibilities demonstrated in professional competence frameworks. The paper also provides implications for the design of information security awareness programs and information security management systems in organizations.

To the best of the authors’ knowledge, the paper is the first study that addresses ISP compliance behavior from a professional competence perspective.

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the main themes ‐ a discussion between Bill and Jack on tour in the islands ‐ forms the debate. Explores the concepts of control, necessary procedures, fraud and corruption, supporting systems, creativity and chaos, and building a corporate control facility.

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the main themes ‐ a discussion between Bill and Jack on tour in the islands ‐ forms the debate. Explores the concepts of control, necessary procedures, fraud and corruption, supporting systems, creativity and chaos, and building a corporate control facility.

The purpose of this study is to identify the competencies required of Shari’ah auditor (SAR) in the Islamic banking environment.

A qualitative approach using a multiple-case study through the semi-structured interview was used. Data was gathered from a representative of Central Bank of Malaysia, and 30 other respondents consist of the Head of Shari’ah audit (HSA) and SAR from four types of banking institutions. A focus group discussion was later conducted to validate the model of competency proposed.

Results show a mixed practice on the recruitment of SAR. Most banking institutions prefer to use their existing internal auditors as opposed to recruiting fresh graduates or acquire experienced SAR from other financial institutions. Knowledge in Shari’ah, Islamic banking and Fiqh Muamalat is considered as the essential knowledge component for SAR, while auditing is revealed as the core skill that SAR should have to perform the Shari’ah audit effectively. The study also found that personal skills such as willingness to learn and teamwork as the complementing characteristics to the knowledge and skill components, as a package required for a competent SAR.

The results of this study would have both theoretical and practical contributions to the regulatory bodies, academicians and professionals. Theoretically, this study made a concerted effort to enhance prior studies on the qualification aspect of Shari’ah audit literature, emphasizing the elements necessary to recruit competent SARs in the Islamic financial institutions (IFIs). The element of “time” has been infused to the existing effective job performance theory add dynamics to the model, recognizing the need for years of experience as part of elements necessary to become competent SAR. In practice, the competency model is recommended to the industry players in pooling competent talents in the Islamic finance industry (R4) and (B5). In spite of its limitation to confine only to the IFIs, it sheds light on human resource management within the Islamic organizations.

The study would contribute to the practitioners as a guideline to the Human Resource Department in recruiting their SAR and also for succession planning purposes.

A competency model for SAR was proposed focusing on building knowledge, core and personal skills that can be used as guidance in determining the criteria needed for a competent SAR, which is a new dimension for Islamic auditing literature. The sub-objective of determining the elements of competency, as well as understanding the current practice of recruiting the SAR became the input in the building of the competency model.