ABSTRACT
This chapter examines the factors that contribute to the Compliance environment, looking at influences upon it and considering what the function's current operational environment. The structure of the function will have an impact on the performance of the Compliance role. The attitude of the board and senior management is vital to the success of the Compliance function. Primary legislation is the chief source of law in a particular jurisdiction. The approach taken by regulators in a particular jurisdiction or sector heavily influences the regulatory environment and thus those operating within the Compliance environment. Under the Institutional model of regulation, a firm's legal status determines which regulator supervises it. Individual regulatory authorities or regulatory divisions exist for distinct categories of financial services business. Essentially, the intended risk management strategy within the firm and the role the Compliance function is expected to play in this form the basis of the Compliance strategy.
