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Essential Strategies for Financial Services Compliance



Essential Strategies for Financial Services Compliance

Annie Mills

ISBN: 978-1-119-99515-9 March 2011 374 Pages


Compliance officers perform a vital, yet unpopular role in the business world as they advise on complying with myriad rules and regulations. What is good for compliance is sometimes seen as being bad for business, making a compliance officer's role a difficult one. Essential Strategies for Financial Services Compliance offers practical guidance on how to apply a regulatory requirement to day to day situations. It also shows how to communicate the compliance department?s activities to the rest of the firm, how the role fits within the organization as a whole, what the scope and limitation of their responsibilities are, what to do when things go wrong, and how to deal with unusual problems.

Preface (or How Not to be an Execution Officer)


List of Abbreviations


1 The UK Regulatory Environment

1.1 Different regulatory regimes in the UK

1.2 The FSMA regime for investment business

1.3 The UK's anti-money-laundering regime

1.4 The UK's takeover regime

2 The Compliance Function

2.1 Compliance as a concept

2.2 The Compliance Officer

2.3 Compliance: good and bad

2.4 The argument for Compliance 

2.5 Compliance as a profession

3 The Compliance Contract

3.1 The Compliance Mission Statement

3.2 The Compliance Charter

4 Mapping Your Compliance Universe

5 Mapping Your Corporate Universe

5.1 Operating entities

5.2 Business units

5.3 External Service Providers

6 Regulators and Other Industry Bodies

6.1 Exchanges

6.2 Clearing houses

7 The Legislative Environment and Rules Mapping

7.1 Rules mapping

7.2 Detailed rules mapping for your own firm

7.3 Mapping requirement for an overseas jurisdiction

8 Financial Products, Services and Documentation

8.1 Products and services

8.2 Understanding products and services in context

8.3 Documentation

9 Compliance Outside the Compliance Department

9.1 The Front office

9.2 The Back office and other support functions

10 Key Compliance Department Activities

10.1 Routine activities

10.2 Off Piste Compliance: advisory work

10.3 Compliance conundrums

11 Comply or Die - When Things go Wrong

11.1 Someone's watching you

11.2 The FSA has 'hot buttons'

11.3 What the FSA can do to find out more

11.4 What to do if you are being investigated or are subject to disciplinary action

11.5 Consequences of rule breaches and other regulatory misdemeanours


A Routine Compliance Activities

B Routine Anti-Money-Laundering Activities

C Compliance in the Front Office

D Compliance for Senior Management, the Back Office and Other Support Departments

E Compliance Conundrums - What Would You Do?


Box 1: Acting on Principle

Box 2: ARROW

Box 3: Basel II and CRD

Box 4: Extradition

Box 5: Financial Services Action Plan

Box 6: Going Global?

Box 7: Industry Guidance

Box 8: L&G v. the FSA - Who are the real winners and losers?

Box 9: Markets in Financial Instruments Directive

Box 11: Prudential Regulation of Capital Adequacy

Box 12: The Enforcement Process Getting on the wrong side of the FSA

Box 13: The Lamfalussy Process

Box 14: The Laundering Process

Box 15: Treating Customers Fairly


1 Regulators and Other Industry Bodies

2 Exchanges and Clearing Houses

3 Financial Services Legislation

4 Anti-Money Laundering and Counter Terrorist Financing

5 EU Legislation Relevant to Financial Services in the UK

6 US Legislation Relevant to Financial Services in the UK

7 Equities, Bonds and Loans - Summary Differences

8 Equities

9 Bonds

10 Loans

11 Derivatives

12 Collective Investment

13 Foreign Exchange

14 The Money Market

15 Islamic Finance

16 Trade Finance

17 Trusts

18 National Savings and Investments

19 Customer Documents

20 Trade Documents

21 Regulatory Documents

22 UK Tax Documents

23 Sample Enforcement Actions

24 Sources and Resources