MyComplianceOffice Blog

 As part of the audit process, regulators expect you’ll have quick and easy access to your compliance data. How promptly and thoroughly you can provide the information that auditors request sets the stage for how the regulators will perceive your entire compliance program.

The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), the Regulators, have issued a joint letter detailing their observations about how the banking industry has implemented measures to comply with the Financial Accountability Regime (FAR).

The US Securities and Exchange Commission has published its rundown of Examination Priorities for Fiscal Year 2025. The 2025 Exam priorities provide an outline of the questions and proof points that regulators will likely be evaluating during examinations. Reviewing the priorities will allow CCOs to assess their compliance programs to ensure that they have the required policies, procedures and controls in place—and that there are systems in place to easily evidence compliance.

Firms should also take a look at 2024's Enforcement Results for additional insight into areas of SEC focus.

Regulators around the globe are taking a firm stance against off-channel communications. In the US, the SEC recently charged 26 firms related to extensive record keeping failures, resulting in around US$390 million in penalties. In the UK, the FCA has issued comparatively smaller fines—though the regulator is now calling on banks to report staff breaches of encrypted messaging policies. The move reveals the FCA’s intent to gain a much deeper understanding of how apps like WhatsApp, Signal, and Telegram are currently used within financial services.

The financial services industry brings substantial responsibilities for those working within it, often far beyond other professions. After all, dealing with money brings significant consequences when managed incorrectly. The outcomes of improper financial management, unethical behaviour, and conflicts of interest can impact not only the lives of clients but also financial advisers who fail to meet the standards of regulators or their firms.