The rising cost of compliance
An expert in property management is warning of the importance of understanding regulation and compliance in asset management.
Figures from the Financial Conduct Authority (FCA) show that the number of regulatory disciplinary cases has increased over recent years and fines imposed in 2013 showed a 50 per cent increase on the previous yearâ€™s total.
The statistics point to the increased regulatory expectations on firms, particularly as new rules continue to be implemented.
Amanda Luby, safety, health, environmental and quality (SHEQ) manager at All in Property, is reminding asset managers of the increasing need for compliance to be at the top of the agenda.
She said: â€œOne of the biggest issues surrounding compliance is that it is often misunderstood. For example, increasing numbers of asset managers and corporate lenders overlook the need to ensure compliance in contracting companies, without realising that this can make them vicariously liable for their contractorâ€™s actions.â€
Risk management controls are subject to increased scrutiny and as a result, the industry must remain ahead of the game. It isnâ€™t enough just to meet legislation and tick a box; companies need to be carrying out internal audits of their procedures as well as being prepared for external audits by the ISO.
Regulations are also evolving which is something asset managers need to be keeping a close eye on, as well as constantly taking steps to increase their level of expertise. Failure to adapt to changing regulatory requirements could have serious consequences for firms.
â€œCompliance is key to identifying and mitigating risk, as well as protecting the business from fines and protecting brand reputation. If handled correctly, however, compliance can also create a competitive advantage through improving corporate value, transparency and reputation.â€
Amanda is qualified to NVQ level 5 in occupational health and safety, and has recently completed the PG Diploma. She is also NEBOSH qualified and holds graduate membership to IOSH.