Grow your financial services firm with managed compliance

24th August 2018 2819 - Blog Posts

Grow your financial services firm with managed compliance – Understanding the benefits

Financial firms are facing a greater regulatory burden than ever before. Changes to money laundering regulations, the introduction of MiFID II and a raft of other compliance demands are putting increasing pressure on financial services firms’ resources. Many companies are recognising the benefits of managed compliance as a way of boosting growth and easing some of this regulatory burden through outsourcing part (or all) of their compliance function. In this blog, we examine some of the benefits of managed compliance.

Free up resources to concentrate on core activities

Meeting compliance demands is crucial, especially as money laundering and the financing of terrorism continue to rise, but it can be costly and time consuming. Understanding the requirements of AML and KYC needs in-depth continuous training to stay aware of constantly changing and evolving regulations. Managing compliance in-house can divert from the core profit-generating activities of your firm and hamper growth.

Reducing regulatory risk

As compliance requirements have become more stringent, the consequences of failing to meet these demands have become more severe. For example, firms that do not have the correct AML policies in place could face criminal charges. Failing to meet compliance demands can also cause serious reputational damage as clients and investors are likely to view the scenario as a red flag for committing new funding. Using managed compliance services from Lawson Connor mitigates some of this regulatory risk as we ensure that robust compliance frameworks are in place and regulatory demands are met.

Combat the compliance skills crisis

The recent influx of regulatory changes in the financial industry has made compliance expertise a highly prized asset. Recent research suggests that 69% of chief executives in the asset and wealth management industries are concerned about the availability of key compliance skills. Finding the right talent to build an in-house compliance function that has the capability to meet current regulatory demands is more challenging than ever before. Outsourcing, or, in other words, using ‘managed compliance’ services provides the opportunity to scale up if required without having to laboriously search for the skills to bolster an in-house function.

Cushion against post-Brexit uncertainty

As the financial industry is still mired in uncertainty about what will happen in the case of a hard Brexit, managed compliance can be very useful. In particular, there are concerns about regulatory frameworks becoming increasingly complex, and there remain ongoing concerns about what will happen to ‘passporting rights’ for financial firms. Using our managed compliance services means you can rely on us staying on top of any regulatory changes, and Lawson Conner have a proven track record of providing MiFID passporting strategies and supporting appointed representatives in Europe as tied agents which could potentially mitigate any risks that might transpire.

managed complianceTake advantage of RegTech

As part of our managed compliance services, we offer a software platform which can be used as a standalone service or a fully outsourced package and can help clients cut costs by 50-80%. Our software platform handles onboarding and continuous monitoring, making compliance processes more efficient and therefore assisting your business growth.

At Lawson Conner, we have extensive experience in providing managed compliance services for financial services, funds and law firms based all over the world. Contact us to find out how you can reduce your regulatory risk and access top-level compliance talent, technology and expertise. Learn more, click HERE.