Why you can’t ignore compliance
Trying to run a business without an awareness of compliance is like trying to play a game of chess without rules—no guidelines or conventions to tell you what moves you can and can’t make, and no framework to keep play fair, competitive and developing towards a goal. Without rules, the game descends into uncertainty, confusion, and chaos.
Compliance sets a framework and rules for businesses to run smoothly, safely, and ethically. It may not be the most exciting item on the agenda, but not giving compliance the love and attention it deserves can damage your business and lead to serious consequences.
What is compliance?
Compliance is the process of companies adhering to laws, rules and regulations which emanate from or are set by a regulatory authority (both within a country/territory or outside). In the UK for the financial services industry, the regulatory frameworks are set by the Prudential Regulation Authority (PRA) and/or the Financial Conduct Authority (FCA), depending on how your specific firm is regulated.
Companies are responsible for ensuring good compliance by taking steps to prevent, detect or resolve any violations. Neglect it at your own risk. Here’s why:
Compliance is the backbone of any business
Compliance rules are there to maintain standards across an industry. Whether your organisation is a small start-up or a multinational corporation, embedding necessary policies and procedures will help ensure structure and high operational standards, keeping your company on a safe and even keel.
Making sure you’re compliant on issues such as complaints management, selling or advising to consumers and Consumer Duty, anti-money laundering, sanctions and senior manager and certification regimes are essential to keeping your company strong and upright.
Compliance shapes your reputation and builds trust
In today’s digitally connected world, corporate and employer branding are more important to the success of your business than ever before. In being (and being perceived to be) compliant, your company is laying a foundation of trust on which to develop a reputation as an ethical, transparent, reliable brand.
Aligning compliance with your organisation’s wider values and purpose—embracing it as a positive investment rather than a costly constraint—will strengthen your brand, improve recruitment, and help your company attract top talent.
Failure in compliance could cost you
Compliance applies to everyone and is not a choice—if you have a regulated business, you must comply with the rules and regulations. The bottom line is that if your compliance failures get caught out, it’s going to cost you a lot of money.
Fines for breaches are often significant, plus you’ll also have to foot the bill for correcting the problem. That might be paying compensation or paying an FCA-appointed person to resolve issues and put you back on the right compliance track. On top of that, you’ll lose revenue because of your tarnished reputation and incur costs as once loyal and valuable staff jump ship to join a company who do pay attention to compliance and have a strongly embedded compliance culture.
Compliance can fuel growth
Ignoring compliance not only risks incurring costly sanctions, but it is also a missed opportunity. The most successful organisations see compliance as a way to improve the business and gain a competitive edge, rather than as a restriction. As well as positively impacting your brand and reputation, good compliance can help increase productivity, improve operational efficiency, and boost profit.
An effective compliance strategy will help your company grow and flourish. A specialist compliance team will ensure your compliance strategy develops and scales with your business, keeping it secure and sustainable in the long term.
We specialise in supporting FCA and PRA-regulated businesses across the whole regulatory spectrum. To get the most out of compliance and adopt a positive compliance culture in your company, get in touch today.
