Compliance professionals can help protect consumers

Compliance officers have an important role to play in facilitating the protection of consumers and reducing systemic risk. In this way they share a common goal with regulators, said Tim Howse, Chairman of the Compliance Institute of South Africa.

Writing in the Institute’s latest annual report, Howse said that compliance professionals should promote a culture of compliance in their organisations, which entails encouraging a set of appropriate values, beliefs, assumptions and behaviours.

“Of relevance right now is the need to create awareness of conflicts of interest and how to avoid them, and to help organisations develop a desire to treat customers fairly as a matter of course,” he said.

The Institute’s role is to equip compliance professionals with the professional status, knowledge, skills, tools and best practice standards to fulfil their function. To this end, last year the Institute contributed to the development of the knowledge and skills criteria that form the basis of the compliance officer subordinate legislation under FAIS.

A key focus for the near future is to finalise the compliance officer qualification and new professionalism framework. This includes the specification of a qualification for compliance officers plus new designations. The Institute is also developing on-line training material for its Generally Accepted Compliance Practice Framework (GACP).

The Institute now has approximately 1000 members, many of whom are from the financial services industry but with a growing representation from other industries as well. Howse said a broader membership strategy is being developed aimed at enabling the Institute to service the needs of compliance professionals from a wide range of industry sectors.

“We’re also developing an Africa representation strategy to promote our vision in our neighbouring countries and elsewhere in Africa,” he said.

In terms of finances, Howse said the Board was extremely mindful of the need to ensure the Institute’s long-term financial stability. “This is not only for our own sustainability, but also because of the growing importance to members of the professionalism framework being rolled out and the need to maintain our GACP framework going forward. These will become increasingly dependent on the continued existence of the Institute. Fortunately we are in a sound and stable financial position as a result of conservative and diligent financial management.”

In conclusion, Howse said that the Institute, its Board and sub-committees are made up of committed, talented people, many of whom give tirelessly and passionately to developing the body of knowledge and frameworks that go towards building a strong compliance profession. “I am very proud to be part of this and delighted to be leading a Board committed to being of service to members during a time of both huge challenges and opportunities.”