ABSTRACT
The Basel Committee requires that each ‘bank should have an executive or senior staff member with overall responsibility for co-ordinating the identification and management of the bank’s compliance risk and for supervising the activities of other compliance function staff’. The consequence is that the compliance function needs to constantly scan the regulatory ‘horizon’, analysing each regulatory document and speech. Compliance needs to advise on workable business solutions to address changes in regulations and regulatory emphasis. The former authority is obvious and can be seen in the compliance officer’s position in the firm’s hierarchy, their reporting lines, the unit’s budget and other resources and so on. With the right attitude and the necessary skills and training compliance can often demonstrate its professionalism by identifying the issues, actively communicating them and driving action to remedy the problems. The chapter also presents an overview of the key concepts discussed in this book.
