In recent years, numerous compliance officers at large firms have been fined, banned, suspended or asked to leave. Financial services firms face a complicated raft of changes to rulebook and supervisory expectations with more individuals being held personally accountable for regulatory failings, particularly those which result in customer detriment.
Rising liability has put increased emphasis on senior individuals’ ability to identify, manage and mitigate their own personal regulatory risks, with compliance officers feeling themselves to be particularly vulnerable.
Thomson Reuters has gained insight and views from a wide range of expert sources across the financial services industry through its global events and as part of a series of surveys. In all, more than 2,000 risk and compliance practitioners have contributed their views to the Thomson Reuters analysis on personal liability.
The consensus is that personal liability is here to stay. The perception is that compliance officers appear to be feeling unduly vulnerable with the practical reality likely to be that firms will look to their compliance function to determine what “good” looks like in the management of their own personal regulatory risk that can then, in turn, become the blueprint for everyone else.
Read our Personal liability special report