A fully updated edition of the definitive guide to financial regulation In recent years, not only has the compliance field become firmly established, but it has seen staggering growth, thanks to never-ending changes in the regulatory environment. This excellent book addresses an urgent need with authoritative advice. Compliance with financial regulation needs to be embedded into company culture. This book shows how it should be recognized as a fundamental part of strategic thinking: making compliance a strength rather than weakness; an opportunity rather than threat. David Craig, President of the global Financial and Risk business at Thomson Reuters Essential Strategies for Financial Services Compliance is a well drafted, insightful and essential text for Compliance staff. It demonstrates a practical and user friendly approach to the role of a Compliance professional providing good examples, templates and case studies. It has grasped many of the key issues around conduct, culture and compliance practice and is an ideal text for compliance students of this evolving dynamic discipline. The ICA recommends the book as a core text for its Compliance and GRC courses. Bill Howarth, Chief Executive Officer, International Compliance Association The updated Essential Strategies for Financial Services Compliance is fundamental reading for any budding Compliance Professional, and an excellent reference for those already 'treading the boards'. With the new responsibilities and accountabilities of Compliance Officers, and changes in regulators and their emphasis, the key areas mentioned are vital for any large organization's compliance department to adopt and maintain. Thoroughly recommended to anyone in a major financial services organization. Lee Werrell, Chartered FCSI FISMM, Author of Compliance Managers Guidebook & Reference Acknowledgements                                                                                             List of Abbreviations                                                                                          Preface (Or, How Not to be an Execution Officer)                                            Foreword                                                                                                             PART I COMMENTARY AND CONTEXT                                                     1 The UK Regulatory Environment                                                                   1.1 Regulation in the UK                                                                                    1.2 Different regulatory regimes in the UK                                                       1.3 The FSMA regime for investment business                                                 1.4 The UK s anti-money laundering regime                                                     1.5 The UK s takeover regime                                                                           1.6 Other UK regulatory regimes                                                                       2 The Compliance Function                                                                               2.1 Compliance as a concept                                                                              2.2 The Compliance Officer                                                                               2.3 The argument for Compliance                                                                      2.4 Compliance as a profession                                                                          2.5 Compliance: good and bad                                                                           3 The Compliance Contract                                                                                3.1 The Compliance Mission Statement                                                            3.2 The Compliance Charter                                                                              4 Mapping Your Compliance Universe                                                              5 Mapping Your Corporate Universe                                                                 5.1 Operating entities                                                                                          5.2 Business units                                                                                                5.3 External Service Providers                                                                           6 Regulators and Other Industry Bodies                                                             6.1 Exchanges                                                                                                     6.2 Clearing houses                                                                                             7 The Legislative Environment and Rules Mapping                                          7.1 Rules mapping                                                                                              7.2 Detailed rules mapping for your own firm                                                   7.3 Rules mapping for an overseas jurisdiction                                                 8 Financial Products, Services and Documentation                                           8.1 Products and services                                                                                    8.2 Understanding products and services in context                                          8.3 Documentation                                                                                              9 Compliance Outside the Compliance Department                                          9.1 The Front office                                                                                            9.2 The Back office and other support functions                                               10  Key Compliance Department Activities                                                      10.1 Routine activities                                                                                        10.2 Off Piste Compliance: advisory work                                                        10.3 Compliance conundrums                                                                            10.4 Dealing with a lack of cooperation                                                            11 Comply or Die When Things go Wrong                                                    11.1 Someone s watching you                                                                            11.2 The regulators have hot buttons                                                                11.3 What the regulators can do to find out more                                              11.4 What to do if you are being investigated or are subject to disciplinary action 11.5 Consequences of rule breaches and other regulatory misdemeanours       APPENDICES A Routine Compliance Activities                                                                      B Routine Anti-Money Laundering Activities                                                   C Compliance in the Front Office                                                                      D Compliance for Senior Management, the Back Office and Other Support Departments                                                                                                  E Compliance Conundrums What Would You Do?                                       PART II COMPLIANCE PERSPECTIVES                                                       Box 1: Acting on Principle                                                                                 Box 2: Regulators Approaches to Risk Assessment                                         Box 3: Basel III and CRD IV                                                                              Box 4: Extradition                                                                                              Box 5: Financial Services Action Plan                                                               Box 6: Going Global?                                                                                         Box 7: Industry Guidance                                                                                   Box 8: L&G v. the FSA Who are the real winners and losers?                       Box 9: Markets in Financial Instruments Directive                                           Box 10: Money Laundering Statistics                                                                Box 11: Prudential Regulation of Capital Adequacy                                         Box 12: The Enforcement Process Getting on the wrong side of the regulators                                                                                                            Box 13: The Lamfalussy Process                                                                        Box 14: The Laundering Process                                                                        Box 15: Treating Customers Fairly                                                                    Index