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Compliance department |
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Compliance departmentA department in all organized stock exchanges to ensure that all companies, traders, and brokerage firms comply with Securities and Exchange Commission and exchange rules and regulations.Compliance department Similar MatchesComplianceComplianceLiterally, the act of complying with rules and regulations.In the financial markets, compliance with the rules of the SEC and FSA is a major issue for banks, brokers and fund managers. All of these companies have dedicated compliance staff whose job is to make sure that the procedures used in the company's operations follow the prescribed rules.Penalties for breach can be severe, both in pecuniary terms and in damage to reputation. The 'pensions mis-selling' scandal in the UK is a good example of failing compliance.Within banks, one of the jobs of the compliance officer is to make sure that people working in the broking department do not find out about deals being worked on by people in the corporate finance department - because if they did, and they acted on that information by buying or selling shares, they would be in breach of insider dealing laws. The idea that compliance officers can actually stop 'corridor gossip' within banks has been likened to putting a dozen rabbits in a hutch and giving one of them a red flag to wave whenever the others show signs of breeding. |
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