FSA backs new compliance standard

The FSA has given its backing to BS 8453, the new compliance framework for regulated financial services firms.

The British Standards Institution (BSI) says the standard is the first of its kind and will help firms to manage regulatory risks and demonstrate to consumers they are improving governance and accountability procedures.

It developed BS 8453 after detailed consultations and contributions from organisations such as the Association of Private Client Investment Managers and Stockbrokers, the Chartered Institute for Securities & Investment and compliance specialists Thomson Reuters GRC and PwC.

Sheila Nicoll, director of conduct policy at the FSA, says: "The FSA recognizes the importance of an effective and well-managed compliance function at regulated firms.

"We welcome the publication by the BSI of this framework standard, which provides a valuable resource about the theory and practice of compliance."

The standard can be used as a benchmarking tool by those working in compliance oversight functions, those with audit and assurance responsibilities within a firm and external compliance consultants.

Mike Low, director of BSI Standards, says: "Operating to the BS 8453 framework will embed the principles and processes that support effective compliance programmes.

"These can help firms to prevent compliance failures while developing a culture which better protects the interests of shareholders, investors and customers."