With the recent increase in law firms looking to work with compliance consultants, we look at why businesses outsource some of their regulatory duties.
- As compliance consultants live, sleep and breathe risk management, they could be in a better place to anticipate when things are about to go wrong. This could save you cost, time and even the wrath of an SRA investigation. To demonstrate, the SRA recently contacted a firm for sight of their AML Firm Wide Risk Assessment, which they didn’t have in place even though this has been a requirement since 2017. No doubt, the SRA weren’t impressed which resulted in regulatory action. The firm then contacted us and we worked with them to address the issues that had been raised. Had the firm worked with us earlier, we would have picked up the absence of the AML Firm Wide Risk Assessment and put one in place.
- On your professional indemnity insurance renewal, a declaration that you work with a compliance consultant could reduce your premium. Underwriters like to see that you are serious about compliance and don’t merely approach this as a ‘tick box.’
- As time engaged on the compliance officer role cannot be billed to clients, your senior fee earners are being used for work that could be outsourced, at a competitive rate, which would free them up to generate fees for the firm.
- Does your compliance officer have time to undertake the role? Were they voluntold to do it? Do they have the necessary experience and training? Is compliance always at the bottom of their to do list? Although these are the types of challenges that most businesses face on a daily basis, the SRA will not accept excuses if things go wrong.
- Although compliance starts at the top, it should be embedded within the fabric of your firm. From our experience staff tend to engage in the process when they know that an external consultant is involved. In fact, they see us as part of the wider team!!!
If you would like some further information around outsourcing your compliance functions, contact us today.