No room for industry complacency

Complacency is rife within the financial services industry, though companies are failing to prepare adequately to ensure compliance with the Financial Services Authority regulations ahead of the 2004 deadline.

Most companies have at least appointed a compliance officer but this doesn't go far enough. Compliance officers face a mammoth task in reviewing and amending business processes and procedures, overhauling systems, educating employees, and remaining compliant from then onwards. However, not many compliance officers have been given the right budget or tools to work with, as companies try to keep costs down to a minimum The role of compliance officer is still unclear and they are often expected to continue their existing job function within the organisation.

Companies should be looking to foster a culture of departmental responsibility for compliance. Department business managers are best positioned to review staff roles, competencies and business processes, compiling information and reporting back to a compliance officer who is responsible for proving adherence at a corporate level.

If driven from the top, companies will raise awareness of compliance as an important corporate issue affecting every employee of every organisation operating in this sector.

Companies that continue to bury their heads in the sand in the hope that the compliance problem will disappear will soon discover they are putting the future of the business and its employees at risk.

Shabbir Osman

Professional Services Director

Eclipse Computing.