The financial services industry is highly regulated, but what are the non-compliance risks? Let’s look at guidance from FCA compliance consultants who deal with these areas every day.
Financial Penalties
FCA compliance consultants such as www.adempi.co.uk warn that the biggest risk of non-compliance is financial penalties. These can be huge and severely damage the business’s bottom line and stability. For example, in 2019, the average fine for non-compliance in financial services was $145 million USD. These depend on the industry and the severity of the failure, with some fines exceeding a million dollars.
Legal Risks
The legal implications of non-compliance are also severe and can include imprisonment. Depending on what has occurred, legal risks also typically include litigation and fines. Regulatory bodies can investigate and revoke trading permits and levy penalties. Legal proceedings take up time, resources and money, taking the focus away from core operations. Legal third-party claims also ramp up the financial penalties even further.
Reputational Risks
Perhaps the biggest risk of being charged with non-compliance by the FCA relates to your business reputation. In today’s world, and especially in the financial services industry, a strong, trusted and credible reputation is everything. Non-compliance could damage or even destroy your entire business.
Don’t fall foul of the compliance rules, and avoid these significant business risks. Working with FCA compliance consultants can give you the certainty and peace of mind your business operation needs by ensuring you are compliant in all areas. Consultants have the cutting-edge knowledge you need to operate a top-quality business without risks and worry.
