The Importance of a Robust Compliance Program

A robust compliance program’s backbone is a thorough understanding of the business, its background, and the ability to anticipate any changes the firm may make in its business lines.

Knowledge of applicable global regulations is also critically important. For compliance in the U.S., understanding of the federal securities laws and other relevant federal and state laws may be required. In the UK, following and understanding the FCA’s Handbook is equally important.

Essential aspects of an effective compliance program

The compliance program should establish:

• Policies and procedures that direct the business on how to meet regulatory requirements and manage regulatory risks;
• Monitoring, testing, and reporting to show the firm whether policies and procedures are being followed; and
• Disclosure to help clients understand the firm and the compliance risks the firm managers.

The compliance program demands continuous vigilance. As regulations shift, business practices evolve, and firms expand or contract, maintaining relevance and effectiveness requires proactive oversight. Compliance officers and business leaders must work as a team to anticipate changes and adjust the compliance program accordingly, ensuring it remains aligned with both regulatory expectations and business objectives.

Compliance also depends on effective data management. Understanding, monitoring, and managing a firm’s risks requires a broad spectrum of information, making it beneficial to have this data well-organized and readily accessible for analysis.

Compliance as a collective responsibility

Compliance is a team sport. Partnering with different business functions to learn how they operate in practice will help compliance design policies and procedures that are practical, workable, and effective. A strong partnership with the business reinforces the firm’s culture of compliance, giving employees the opportunity to think about their compliance objectives as they guide compliance staff through their processes and help identify potential gaps or areas for improvement.

A common misconception is that the Chief Compliance Officer (CCO) should shoulder all compliance-related tasks. This approach is neither practical nor efficient. Compliance responsibilities should be assigned those best suited to perform them, regardless of their department. However, these duties must be clearly defined to ensure everyone understands their roles.

The CCO and compliance team should then intermittently monitor these tasks to verify adherence to policies and procedures and their effectiveness in reducing regulatory risks.

Fostering a culture of compliance

The compliance program is greatly strengthened when a firm’s leadership declares compliance as a core value and consistently demonstrates that commitment through action. Regulators refer to this as the “tone from the top,” a key factor in regulatory examinations and supervisory visits. Cultivating a strong culture of compliance enhances the program's overall effectiveness.

A robust compliance culture promotes a proactive approach to regulatory issues, professional skepticism, and courage to ask challenging questions. Employees should be empowered to report compliance issues and propose changes to the compliance program. An effective program supports and applauds staff who pursue inconsistencies and escalates these all the way to senior management and the CCO if necessary. When a firm fosters a strong culture of compliance, everyone takes personal responsibility for ensuring it operates on the right side of the law.

The CCO’s role in the compliance process

The role of the CCO is essential in the compliance process, requiring competence, knowledge, and the firm's support to enforce adherence effectively.

The CCO must understand the regulatory landscape, identify threats, and implement effective controls. Strong stakeholder management skills are also critical to integrating business and regulatory considerations successfully.

The CCO should have that authority and status to bring stakeholders from all facets of the firm to the compliance table, including senior stakeholders, when needed. This inclusive approach ensures that the firm’s policies and procedures accurately reflect its practices, enhancing efficiency, securing employee buy-in, and strengthening the compliance culture.

Want to learn how to build a robust compliance program?

Download our guide to learn key considerations for setting up and maintaining a program that not only addresses some of the U.S. Securities and Exchange Commission’s (SEC’s) and UK Financial Conduct Authority’s (FCA’s) key regulations, but also equips you to effectively manage evolving compliance demands.

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How we help

Whether you are looking to launch, grow, or protect your business, a robust compliance program is essential. At ACA Group, we offer a comprehensive suite of advisory, managed services, and technology solutions designed to help you build, oversee, and maintain a best-in-class compliance program.

Partnering with ACA Group provides more than just compliance solutions—it offers a strategic advantage that supports your firm throughout its entire lifecycle. We enable you to stay ahead of regulatory changes, manage challenges, and focus on achieving business success with confidence. Our wide range of solutions includes: 

• ACA Signature: Choose from our three distinctive models – Partner, Core, or Essential – to customize your services according to your firm's size, specific requirements, and ongoing compliance obligations. These scalable consulting offerings can be paired with managed services, regulatory technology, cybersecurity, and ESG to effectively address your regulatory commitments and day-to-day responsibilities.   
• Managed services: Outsource your compliance management tasks to simplify your processes, save time, and enhance business outcomes. Whether you need support with regulatory filings, AML due diligence, marketing, eComms or social media reviews, investment performance, or code of ethics and personal trading, we’ve got you covered.    
• Outsourced Chief Compliance Officer (OCCO): Optimize compliance oversight by passing your compliance requirements to our experts, helping to lower expenses and provide best practices.    
• RegTech: Unlock the full potential of your compliance strategy with ComplianceAlpha^®, ACA’s scalable governance, risk, and compliance software offerings. Our integrated solutions empower you to streamline processes, enhance oversight, and meet regulatory demands with ease.

In addition to compliance, we also protect your firm with tailored ESG, Cybersecurity, Privacy & Risk, and Investment Performance services - enhancing both your risk management and long-term resilience.

Contact us today to learn how ACA Group’s specialized expertise, advanced technology, and proven processes can help your business achieve its compliance goals, scale efficiently, and protect your reputation in a complex regulatory environment.