Compliance - qualifications/bodies etc
Discussion
I know that there are plenty of switched on finance people here so I'd like to pick your brains please 
I've just started work with a software company who provide customer service software. Their customers include some financial organisations who are saying that the software is helping them with their monitoring and compliance.
It would seem sensible that we get some of our staff properly up to date on the compliance rules.
I've had a look at the FCA regulations fshandbook etc, but clearly this is geared up for the finance companies. What I'm interested in is things to do with the monitoring and compliance side.
Are there recognised courses, industry bodies for compliance experts? I'm interested in how I can make sure that our staff are able to offer the best advice possible when working on customising the software.
thanks!
I've just started work with a software company who provide customer service software. Their customers include some financial organisations who are saying that the software is helping them with their monitoring and compliance.
It would seem sensible that we get some of our staff properly up to date on the compliance rules.
I've had a look at the FCA regulations fshandbook etc, but clearly this is geared up for the finance companies. What I'm interested in is things to do with the monitoring and compliance side.
Are there recognised courses, industry bodies for compliance experts? I'm interested in how I can make sure that our staff are able to offer the best advice possible when working on customising the software.
thanks!
I have the joy of working in Compliance for a network of Financial Advisers currently (4 years) and prior to that 9 years at a Building Society in Compliance.
Chartered Insurance Institute (CII) and Institute of Financial Services (IFS) are the 2 main bodies for exams etc, but these would mainly cover the qualifications for providing advice etc, so the products available though they do have some courses/exams in relation to regulatory rules (Complaint Handling, Supervision etc)
In terms of the actual regulatory rules in the industry, the best resource is the Financial Conduct Authority (FCA) website, in particular the Handbook in the 'Firms' section. But there are one minute guides and a host of other things on there. Also, anything in relation to Financial Crime (Money Laundering, Fraud etc) try the Joint Money Laundering Steering Group (JMLSG) as well as the FCA. Then there's Data Protection so the Information Commissioners Website. Compliance is quite a wide area!
Chartered Insurance Institute (CII) and Institute of Financial Services (IFS) are the 2 main bodies for exams etc, but these would mainly cover the qualifications for providing advice etc, so the products available though they do have some courses/exams in relation to regulatory rules (Complaint Handling, Supervision etc)
In terms of the actual regulatory rules in the industry, the best resource is the Financial Conduct Authority (FCA) website, in particular the Handbook in the 'Firms' section. But there are one minute guides and a host of other things on there. Also, anything in relation to Financial Crime (Money Laundering, Fraud etc) try the Joint Money Laundering Steering Group (JMLSG) as well as the FCA. Then there's Data Protection so the Information Commissioners Website. Compliance is quite a wide area!
Hmm 
not something that may be as easy as it sounds.
You/your team should know about a range of issues, or have an awareness, if not understanding, of so much, for example:
AML
Data Protection
FSMA and related
Consumer Credit
Payment Law
Overseas jurisdictions (?)
FCA High Level Principles, Conduct Rules, Client Money, Complaints, "Perimeter Guidance"
Whilst you can probably quite easily get some CBT material to get people developed upon areas such as Data Protection and Anti-Money Laundering/Fraud principles and practices, I think you will also need to develop people in understanding high level principles and conduct rules. That's not something necessarily off-the-peg.
Unfortunately, that's not the end of the story as then the problem is that your clients will be busy interpreting their own perspectives on the rules and regs, and sometimes a little knowledge could wrong-foot you.
Two possible thoughts in this sort of situation:
1) Engage with the clients to learn more about what they want
2) Find a specialist support/training consultancy to engage with your staff in doing 1), until they have the understanding, skills and knowledge to do that themselves.
Both take some investment and resource though. Either way there can be some pitfalls in "second guessing" a client's compliance and monitoring with a bit of knowledge and without getting them to be specific about what their objectives are.
Clearly, you have to be commercial about it as well - no good devoting resource to training staff ahead of winning the business, and you won't get much thanks (support/cover) from your PI Insurer if you make a wrong call having set your stall out as being knowledgeable. See how you can work with the clients' own risk and compliance expertise to start with.
not something that may be as easy as it sounds.You/your team should know about a range of issues, or have an awareness, if not understanding, of so much, for example:
AML
Data Protection
FSMA and related
Consumer Credit
Payment Law
Overseas jurisdictions (?)
FCA High Level Principles, Conduct Rules, Client Money, Complaints, "Perimeter Guidance"
Whilst you can probably quite easily get some CBT material to get people developed upon areas such as Data Protection and Anti-Money Laundering/Fraud principles and practices, I think you will also need to develop people in understanding high level principles and conduct rules. That's not something necessarily off-the-peg.
Unfortunately, that's not the end of the story as then the problem is that your clients will be busy interpreting their own perspectives on the rules and regs, and sometimes a little knowledge could wrong-foot you.
Two possible thoughts in this sort of situation:
1) Engage with the clients to learn more about what they want
2) Find a specialist support/training consultancy to engage with your staff in doing 1), until they have the understanding, skills and knowledge to do that themselves.
Both take some investment and resource though. Either way there can be some pitfalls in "second guessing" a client's compliance and monitoring with a bit of knowledge and without getting them to be specific about what their objectives are.
Clearly, you have to be commercial about it as well - no good devoting resource to training staff ahead of winning the business, and you won't get much thanks (support/cover) from your PI Insurer if you make a wrong call having set your stall out as being knowledgeable. See how you can work with the clients' own risk and compliance expertise to start with.
Thanks guys!
I realise that it isn't going to be a quick thing to sort.
While our company has some awareness of the issues, I'm thinking about 'unknown unknowns' - its one thing to pick up knowledge from our customers as we go along but that could leave significant gaps in knowledge - especially with such a complex and heavily regulated area. As you say, we don't know if our customers have an idiosyncratic approach to anything.
I've got a shed load of short term stuff to deal with, but I'm also trying to think about what I'd like to organise longer term.
How difficult is it to go through FCA certification if you don't work for a finance company? Is it feasible for me to go through the process even though I have no intention of working directly in finance?
Apparentyl we do have some contacts in some consultancy firms, but I'd rather not be relying on them completely.
many thanks - plenty of reading for me to do anyway
I realise that it isn't going to be a quick thing to sort.
While our company has some awareness of the issues, I'm thinking about 'unknown unknowns' - its one thing to pick up knowledge from our customers as we go along but that could leave significant gaps in knowledge - especially with such a complex and heavily regulated area. As you say, we don't know if our customers have an idiosyncratic approach to anything.
I've got a shed load of short term stuff to deal with, but I'm also trying to think about what I'd like to organise longer term.
How difficult is it to go through FCA certification if you don't work for a finance company? Is it feasible for me to go through the process even though I have no intention of working directly in finance?
Apparentyl we do have some contacts in some consultancy firms, but I'd rather not be relying on them completely.
many thanks - plenty of reading for me to do anyway
TooLateForAName said:
Thanks guys!
I realise that it isn't going to be a quick thing to sort.
While our company has some awareness of the issues, I'm thinking about 'unknown unknowns' - its one thing to pick up knowledge from our customers as we go along but that could leave significant gaps in knowledge - especially with such a complex and heavily regulated area. As you say, we don't know if our customers have an idiosyncratic approach to anything.
I've got a shed load of short term stuff to deal with, but I'm also trying to think about what I'd like to organise longer term.
How difficult is it to go through FCA certification if you don't work for a finance company? Is it feasible for me to go through the process even though I have no intention of working directly in finance?
Apparentyl we do have some contacts in some consultancy firms, but I'd rather not be relying on them completely.
many thanks - plenty of reading for me to do anyway
What do you mean by FCA Certification? All our Financial Advisers are Diploma qualified (Level 4) which is a requirement now post the Retail Distribution Review rules of January 2013 (not for Mortgages or General Insurance though). Most Compliance individuals I come across in the industry have the same and any jobs I've seen require it for Compliance individuals. You could do the qualifications through the CII or IFS no problem if you're happy to go through the study material etc. The exams are multiple choice, with the exception of the Planning Practice one. There's 6 different topics (Pensions & Retirement Planning, Investment Principles & Risk, Financial Planning Practice, Personal Taxation, Protection & Financial Regulation & Ethics).I realise that it isn't going to be a quick thing to sort.
While our company has some awareness of the issues, I'm thinking about 'unknown unknowns' - its one thing to pick up knowledge from our customers as we go along but that could leave significant gaps in knowledge - especially with such a complex and heavily regulated area. As you say, we don't know if our customers have an idiosyncratic approach to anything.
I've got a shed load of short term stuff to deal with, but I'm also trying to think about what I'd like to organise longer term.
How difficult is it to go through FCA certification if you don't work for a finance company? Is it feasible for me to go through the process even though I have no intention of working directly in finance?
Apparentyl we do have some contacts in some consultancy firms, but I'd rather not be relying on them completely.
many thanks - plenty of reading for me to do anyway
If you mean, can you become FCA Authorised as an individual, then it would depend in what area you want a Controlled Function. There is a Compliance Oversight Controlled Function (CF10). Have a look on the FCA Handbook for a Form A which is the application form you would need to submit, which will give you an idea of what they ask for. I doubt you would be able to become a CF10 though, as your organisation isn't FCA Authorised is it?
In terms of your organisation becoming FCA Authorised, it is a big undertaking in terms of the application process and the ongoing supervision and reporting requirements. From some feedback we have had previously where one of firms was authorised to provide Mortgage advice but wasn't actually actively doing so, the FCA can also be a little non-keen on firms having authorisations they don't use.
CISI have a number of courses at different levels specifically covering compliance as does the International Compliance Association:
http://www.cisi.org/bookmark/genericform.aspx?form...
http://www.int-comp.org/certificates-diplomas
http://www.cisi.org/bookmark/genericform.aspx?form...
http://www.int-comp.org/certificates-diplomas
Gassing Station | Finance | Top of Page | What's New | My Stuff