Regulatory compliance can be defined as the fact that a company or an industry is operating in a manner that corresponds to the guidelines and rules issued by a governing body.
It is nearly impossible for some corporate bodies to achieve complete regulatory compliance. The rules which must be followed in order to achieve regulatory compliance change periodically, and are designed to fix flaws and close loopholes which exist in the industry. The rules often therefore require a company to change its operation procedures, a time-consuming process which by the time it completes, new regulations might be issued.
Regulatory compliance is especially important in the financial services industry. The recent near-collapse of the banking sector has made the exact substance of the compliance rules an issue of discussion, but the industry had been heavily regulated for some time before that. The need for such regulation comes from the fact that the system commonly creates situations where individuals are in a position to make personal gains from information that is not publicly available. Such gains have a distorting effect on the market, which diminish investor confidence and hurt the economy in the long run.
If you are aware of any behaviour that could be considered non-compliant, you may be under a legal duty to report such activities. Companies which allow such behaviour to take place, even if the behaviour is not known to the company, may also be held liable. If you have any uncertainty you should consult a legal professional in order to ensure you avoid legal liability in the future.
If you would like to obtain legal advice on regulatory compliance, Contact Law can put you in touch with a local specialist compliance solicitor free of charge. So, if you have any questions or would like our help in finding local specialist compliance solicitors please call us on 0800 1777 162 or complete the web-form above.
- Last Updated on 24/04/2013