Businesses of all sizes are playing a risky game when they don’t adhere to financial compliance rules. Financial Conduct Authority figures establish that over £190 million in fines were issued by the end of 2020 to businesses who had failed to meet their regulatory standards, with other measures – like prohibition – following. What’s more, it’s not just the big banks who were impacted – small businesses bore the brunt of large deductions, too, many of which can be threatening to the lifespan of the business. Having a unified financial regulation system in place and then keeping up with changes will help your business to stay safe and fulfil its duty.
As noted by the Business Leader magazine, there are huge amounts of changes on their way in the UKs financial regulatory environment. The economy has changed in drastic fashion over the past year – regulators are now scrambling to keep up. As a result, it can be difficult for non-experts to get a grasp of what regulations are needed and how to ensure they are met. According to industry authority MirrorWeb, one way that businesses are helping themselves to stay in line is through the use of unified platforms. These enable a third party to manage financial compliance in such a way that it can remain up-to-date with the latest developments. It’s important for businesses to note, however, that they are still liable for any breaches.
While changes are afoot, there’s not any reason to believe there will be a huge shakeup of how the market works. According to The Guardian, analysts throughout the City of London have noted how the current rules are what makes Britain an attractive place for businesses to work. The level of financial regulation in place gives some degree of confidence in British businesses and markets that aren’t necessarily found elsewhere. As a result, lawmakers and business voices are not predicting wholesale change away from the systems in place today. Instead, new developments on these systems are likely to occur, and that will filter down to every single level of a business.
According to London legal experts Sherman & Sterling, there will be further change on the way and it will be in such a way that it impacts day-to-day workers. The Gloster Review, published in December 2020, is yet to be implemented, but recommends that workers in businesses have a long-term awareness of the changes that have been made in financial regulation. This raises the prospect of employers providing greater levels of training and education to their workers to ensure that they’re making the best effort that they can in combating financial regulation breaches.
What does this mean for small business? Sit tight, and continue fulfilling your regulatory requirements. The market is going to continue to favour these sorts of rules to help businesses grow and to keep the economy moving. Fulfilling your duty, and being aware of change in the future, will tick a lot of boxes in that regard.