A regulatory compliance audit is a thorough review of a company’s ability to conform to certain regulatory guidelines. These guidelines are paramount for any firm to avoid regulatory penalties and facing suspensions.
However, recent studies suggest that an alarming number of financial firms today doesn’t have any idea how essential a regulatory compliance audit truly is. Considering the fact that some changes on the requirements were already implemented by regulating bodies such as FINRA, SEC, MiFID II and IIROC.
This recent decline in the numbers of companies with regulatory compliance could be the result of two major reasons engraved on the minds of the managing committee of most financial firms today. The first is that they believed that the requirements are not feasible to be applied to the nature of their business and second is that their systems are adequate to meet all the revised regulations.
If you’ve been on the business industry for quite a while, then you should consider preparing for a regulatory compliance audit. It will definitely save you a lot of trouble if you did. All you have to do is to know more about the process and know when the optimal time for you should be by taking a look at this infographic below by Telemessage.