Compliance Survey 2014
The changing role of compliance officers
This is the second comprehensive survey of compliance in Financial Services in Ireland carried out by Deloitte in conjunction with the Association of Compliance Officers in Ireland.
Our aim is to understand how the role of compliance officers has changed with a focus on the challenges and emerging trends that are facing them. Our results show many consistent responses with those highlighted from our 2009 survey but also highlight some unexpected and interesting deviations.
The survey finds that nine out of ten compliance officers surveyed feel that adequate regulation has now been introduced by the Central Bank of Ireland (CBI) and there is no need for additional regulation.
However, while over two thirds of compliance officers believed that the CBI now exercises an adequate level of supervision, 88% of those surveyed identified a need for increased guidance and clarity from the CBI in relation to the implementation of new regulation. Similarly, there appears to be a consensus amongst compliance officers, with over 71% of those surveyed believing, that the use of regulatory enforcement by the CBI has now increased to a sufficient level.
The survey suggests the overall top priority (40%) for compliance functions over the next 12 months will be to ensure that business management in financial services firms implement and embed the significant amount of new regulation in the pipeline. This is consistent with the top priority in the 2009 results and is, most likely, reflective of the continuing volume of new regulation and the tight timelines for implementation. Further significant challenges identified by respondents included managing CBI correspondence (13%), stakeholder management (15%), costs/budgets (15%) and oversight of customer remediation projects (17%). Oversight of customer remediation projects is a new challenge since the 2009 survey. This is likely to remain a high priority for firms given the financial and reputational impact of such issues as the mis-selling of payment protection insurance.
In terms of industry growth, only slightly over a quarter of respondents expect an increase in headcount during 2014. 67% of respondents believe that there will be no change in headcount and the remaining 6% think there will be a decrease in compliance resources. While there is a significant and growing regulatory compliance agenda, there seems to be no expectation of a matching increase in the level of resources in compliance functions. This may well be as a result of budgetary constraints. However, it is imperative that Boards, who ultimately are accountable for building a compliance culture within firms, ensure that management invests in competent qualified compliance resources to assist in doing so.
Association of Compliance Officers in Ireland
The ACOI is the leading member organisation for the promotion of high ethical standards among all persons engaged in regulatory compliance in the financial services sector, offering an unrivalled range of training courses from Certificate to Masters level. We would be delighted to discuss training options for your staff working in compliance.
The Deloitte Ireland Enterprise Risk Services team is made up of over 100 staff risk specialists offering advisory services to clients. The regulatory consulting service offerings include the design and development of compliance frameworks, policies, procedures, monitoring, reporting and regulatory updates. We also offer one off advisory specific to clients’ needs such as license applications, independent health checks, secondments etc.
Deloitte obtained complete responses from 125 compliance officers who serve all the main industries which encompass the financial sector, namely banking, insurance and investments. The banking industry group included domestic retail, credit unions, payment services, private, wholesale, offshore, onshore and IFSC banks. The insurance industry group included general, life, health, reinsurance, brokers, product providers and outsourcing providers. The investment industry group included investment managers, administrators, and product producers. The final category, “other”, includes intermediaries and mortgage brokers.