Managing compliance risk after MiFID

Paola Musile Tanzi, Giampaolo Gabbi, Daniele Previati and Paola Schwizer

Journal of Financial Regulation and Compliance, 2013, vol. 21, issue 1, 51-68

Abstract: Purpose - The purpose of this paper is to focus on changes in the compliance function within major European banks and other financial intermediaries and on the effects of Markets in Financial Instruments Directive (MiFID) implementation. Design/methodology/approach - The four areas of research seek to answer the following questions: Is the positioning of the compliance function “at the top” of the organizational structure? Are the roles attributed to the compliance function, their knowledge and their instruments consistent with their responsibilities? Do the methodologies applied follow a qualitative and/or a quantitative approach? Is the interaction between the compliance function inside and outside the structure appropriate to the goals of compliance? In total, 31 top international groups based in Europe were invited to take part in the research, 16 of them accepted. Findings - The authors observed a resolute adjustment to the regulations in terms of macrostructure and high levels of compliance function competences in investment services and business knowledge, with a low variation. The encouraging news coming out of the results of the research is the confirmation of the presence of a connection between the compliance function and both the system of values and of incentives. Originality/value - The paper's international sample offers a unique opportunity to highlight the critical areas of the compliance function within international groups, with growing operational complexity in a framework of principle‐based regulation.

Keywords: Compliance; Regulation; Governance; Compliance risk; Compliance function. Internal governance; MiFID (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrcpp:v:21:y:2013:i:1:p:51-68

DOI: 10.1108/13581981311297821

Access Statistics for this article

Journal of Financial Regulation and Compliance is currently edited by Prof John Ashton

More articles in Journal of Financial Regulation and Compliance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().