Part of the Finance and Capital Markets Series book series (FCMS)
Central to any discussion of the regulation of financial services is the concept of “compliance.” The Concise Oxford Dictionary lists compliance as “action in accordance with request, command, etc.” So it has the force of something that leads somewhere, an active approach to a suggestion. The dictionary also adds a secondary definition, “(degree of) yielding under applied force.” This is a more passive action, a sense of being cajoled into doing something. In reality, we can see both definitions at work in the relationship between regulator and financial institution. Some organizations work willingly to meet regulation; others more reluctantly, only doing the minimum to avoid punitive action. For those regulations not enforceable by law, a two-step process often is necessary:
A case has to be made to ensure acceptance of the benefit of the investment in compliance.
Compliance is scoped, planned for, and implemented.
KeywordsCorporate Governance Financial Service Audit Firm Generally Accepted Accounting Principle External Auditor
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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© Ross K. McGill and Terence A. Sheppey 2005