Compliance has never been a simple tick-box exercise.
Today’s compliance professionals are expected to interpret increasingly complex regulation, advise the business, support decision making and provide assurance that firms are delivering the right outcomes for customers.
But despite the importance of their role, many don’t have an independent network where they can openly discuss common challenges, test ideas or learn from others facing similar issues.
That was one of the key themes that emerged during Sharon and Julie’s recent meeting with Suneeta Padda of Padda Consulting (insurance compliance specialists).
What started as a conversation about career journeys quickly turned into a discussion about the changing role of compliance and the value of creating a compliance forum where compliance professionals can learn from one another.
Join the compliance forum: REGISTER YOUR INTEREST
Compliance Is Becoming More Complex
Many regulatory requirements are no longer simply about whether a process exists.
Increasingly, firms are being asked to demonstrate judgement, evidence outcomes and show how they are meeting the spirit of regulation rather than simply complying with a set of rules.
That presents a very different challenge for compliance teams.
They are often responsible for interpreting regulation, advising colleagues and making important decisions, yet may not always have someone independent to discuss those challenges with.
Consumer Duty Is a Good Example
One topic that perfectly illustrates this challenge is Consumer Duty.
Several of gpm’s customers have recently asked us to produce Consumer Duty reporting through our INSIGHT reporting application.
From a technology perspective, we can provide reports based on the data held within ibs and output the information clients request.
However, that’s only one part of the picture.
The FCA expects firms to evidence that they are delivering good outcomes for retail customers across four key areas:
- Products and Services
- Price and Value
- Consumer Understanding
- Consumer Support
These principles are underpinned by expectations that firms act in good faith, avoid foreseeable harm and enable customers to pursue their financial objectives.
Boards must review and approve an annual Consumer Duty assessment and firms need to monitor and evidence customer outcomes.
The challenge is that many of these expectations rely on professional judgement rather than straightforward reporting.
Questions such as What demonstrates fair value? or How do we evidence that our communications are genuinely understood by customers? don’t always have simple or universally accepted answers.
Technology can support firms by providing data and reporting, but interpreting that information and determining whether regulatory expectations are being met requires discussion, experience and professional judgement
Creating a Space for Discussion
That is exactly why our conversation with Suneeta resonated.
Rather than simply talking about compliance, we began discussing the value in creating an informal forum where compliance professionals could share experiences, anonymously raise questions and discuss common challenges with peers.
A trusted environment where people can learn from each other, explore different perspectives and discuss the practical realities of applying regulation within insurance businesses.
Join Our First Forum in October
We’re launching our first compliance forum on 6th October in collaboration with Suneeta Padda of Padda Consulting.
We will be focusing on the two areas of Consumer Duty and AI Governance in this first session.
If you’re a compliance professional working in the London Market and think this type of discussion would be valuable, register your interest now.
We would also love to hear from you about any other topic ideas you would like to discuss, and we will focus on the top three.