Introduction: Drivers for change
Compliance functions have gone through a major period of growth and investment since the financial crisis. Many firms have seen a massive growth in their Compliance functions since 2008. But there are now growing pressures for change to improve both the effectiveness and the efficiency of the Compliance function.
In this paper we focus on how Compliance can meet the twin objectives of effectiveness and efficiency.
Over the last ten years, Compliance functions have increased their resources and have widened their range of tasks, with a dramatic increase in their monitoring and surveillance activity, whether manual or substantially automated.
This growth has reflected, in part, the post-crisis regulatory reform agenda (including not only resilience and – for banking – resolution requirements, but also a host of retail conduct, wholesale conduct, anti-money laundering, governance, financial crime, culture and – in Ireland - Senior Executive Accountability Regime (SEAR), more intensive and intrusive supervision, including the Consumer Protection Risk Assessment (CPRA) Framework says KPMG’s Gillian Kelly, Partner in Risk Consulting.