Answers to questions on PwC's State of Compliance Survey 2018

Richard Rattue, Managing Director of Compli-Serve SA

Question 1: Is effective compliance risk management, a strong strategic foundation enabled by compliance technology and talent more critical than ever?

There is often a sense that compliance is becoming more important than ever, but it has always been important – it’s simply become hotter on the heat map, particularly with technological advancements in this space. While not everyone is on board yet, the PwC State of Compliance study supports the shift to use technology in compliance, its importance and the spend placed on development. Effective compliance risk management, strategy and skill are key in this regard, provided a tick-box approach isn’t taken.   

Question 2: What are your top compliance tips for brokers for a winning 2019?

First, embracing RegTech is crucial, and firms will have to invest in order to keep on trend, as well as to protect their best interests. Predictive technology can really assist in flagging issues, such as detecting an unhappy client, allowing firms to solve problems early. The positive insights gained from using technology are invaluable as well. 

Secondly, get sound compliance advice. Most financial intermediaries do simply not have the time or the skills to build a risk-based compliance programme and should seek guidance from those who can assist in this regard. Intermediaries need to be aware of what is happening in the industry with the current Retail Distribution Review as a good example here. Times are indeed tough but cutting corners on your compliance programme is ill-advised.

Lastly, consider that just because the contract says you can do something, doesn’t mean you should. While fair treatment of customers is well-known already, it is always important to question what the right course of action is, irrespective of what a contract permits.