Why You Need To Outsource Your Risk and Compliance Activities

With a whirlwind of new legislation, guidance, and updates, financial firms and businesses can not turn blind eye to the compliance breaches. In fact, the management of risk and compliance to reduce the risk of operational disruption and harm to their consumers is becoming increasingly complicated.

Why choose a regulatory host?

Everyone expects their firm to be operationally resilient with a comprehensive understanding and mapping of people involved (investors and consumers), processes, technology, services, and information necessary to deliver all the important steps to provide business services.

However, the compliance function requires more skills, experience, and knowledge than ever before as mentioned, especially with the growing regulatory complexity. The golden rule for successful operational resilience is to outsource regulatory hosting solutions which will allow your firm to carry out regulated activities without being directly authorized by FCA.

That is, the firms become an appointed representative under the regulatory umbrella of the compliance service provider without being directly authorized by the FCA but retain their own strategy which allows them to undertake a wide range of activities and follow a strategy with the added benefits of using the FCA license of the regulatory host.

When it comes to authorized firms outsourcing to cloud service providers, they are recognized for providing them with additional guidance and much-needed clarity with their processes. As with the increased complexity, the importance of having capable specialists at your service managing your compliance on behalf of your organization, so that you can focus on other factors of your business like generating revenue.

What's more, working with a hosting platform, firms can get the best compliance and risk support from the platform's in-house experts working day-in and out to keep the businesses abreast of the updates which will reduce their compliance burden and take off all the responsibilities for regulatory matters.

There is also an operational advantage for individuals and startups as regulatory hosting services with its incubation platform and knowledge give them access to the firm's tried and tested method for compliance framework.

For the best returns, the firms need to make sure that the FCA appointed representative is compliant with all the relevant regulations, as under the FCA's rules, to allow a smooth transition from a compliance perspective if the firm decides to turn fully regulated.

Many companies choose to outsource the regulatory aspect of their business which helps them overcome the challenges such as lack of trained and knowledgeable in-house staff, deficiencies in processes or data security, be it global compliance needs, infrastructure, or operating costs.

Keeping in mind how critical the data is, third-party providers on behalf of the firms can configure and monitor their services to reduce security and compliance accidents.

Plus, firms get quicker access to more sophisticated systems such as platform design, project management with FCA-specified compliance- that the firms would require expertise to develop in-house.

In using an appointed representative and FCA license of a company, firms can benefit from:

1. Effective application of the underlying rules and guidance through the extended supply chain.

2. Use of FCA-approved policies that comply with all the relevant laws to avoid any breaches.

3. Procedure of governance and compliance supported by a manual plan and strategy with timely campaign management.

4. Cost-effective, which means, it significantly lowers ongoing compliance costs when firms opt for full authorization.

5. Efficient setup with advisory specialist services that do not require any capital.

It is all about choosing a reputable and experienced regulatory umbrella service!

Note that, if a firm decides to outsource their regulatory compliance, they will still be legally responsible for making sure that their company complies with all the applicable laws and regulations. This is the main reason why it is critical to outsource the risk and compliance work to the best regulatory hosting on the market that can ensure you with the compliance relevant to your industry.