11 March 2016
The regulatory landscape is not static and as trust offices have already been subject to stricter monitoring, so shall the future continue to bring similar challenges as regulation evolves further.
So how can the trust office of the future not only be able to meet their current obligations, but also ensure that they can also easily adapt to changing requirements? And how can compliance officers make moves to ensure the concept of Compliance 2.0 gets adopted into their organisation?
You could of course instruct expensive consultants who are expert in risk and compliance, but surely the smart money goes on making the organisation self sufficient, placing the knowledge and know-how at the fingertips of those daily responsible for compliance – namely, everyone.
The Three Lines of Defence (3LOD) model, as outlined by De Nederlandsche Bank (DNB) in their advice on the Act on the Supervision of Trust Offices (Regeling integere bedrijfsvoering Wet toezicht trustkantoren – Rib), puts the operational employee on the frontline of accountability, so getting policies and procedures adopted by all becomes vital.
If information is not tracked properly or needs to be captured by a number of different processes or applications, the compliance officer may struggle to gain an accurate picture of what’s happening.
The answer lies, as does so much in our lives, with technology.
Compliance software is not necessarily a new thing; parts of compliance-driven processes have been automated for some time. However, as regulatory requirements grow, so does the need to find a risk management solution which has the ability to easily track, integrate and properly archive information all the way from client acceptance to transaction monitoring, removing risky manual processes and allowing faster detection of red flags and easy to generate audit reports.
As Accenture’s 2015 Compliance Risk Study concludes: ‘Compliance leaders will need forward looking capabilities, such as data management and analytics, to anticipate changes’. Make the experience of using such systems easy for the end user and you’ve come a long way in the battle to embed compliance into the company culture. Add the possibility of access to legal updates affecting trust office compliance within the system, and you equip compliance officers with the knowledge that regulators expect them to have.
In short, if it is to meet its obligations, ensure transparency and manage risk effectively, the trust office of the future must consider integrating all of its compliance processes into a flexible, agile IT-based system that allows them to quickly identify potential issues and respond fully to changes in regulatory controls.
ComplianceWise is a compliance process consultancy company. We assist financial institutions with the help of our online compliance solution.
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