The compliance industry remains in a space that closely reflects the finance world pre-RDR, according to Apricity Compliance chief executive officer Cathi Harrison.
Speaking to FTAdviser, Harrison pointed to several occurrences in the industry that elsewhere were typically more often found pre-RDR than they were now.
These included commissions being passed between provider and compliance firm, a product or sales driven mentality, and a focus on the negative and worrying aspects of regulation to drive adviser behaviours through fear.
“It is also very behind the tech curve and has seen little innovation or disruption, with it mostly relying still on manual systems and processes," she said. "It is very much behind the curve of evolution we have seen in other areas of financial services.”
Harrison explained that a way to improve this was by recognising that compliance isn’t a separate part of financial services, but something that should be used to help support both advice firms and the end client.
One way to do this, she said, was by bringing in technology to help firms be more efficient and giving them the confidence that they are following all the necessary rules, while doing right for the client.
This will in turn drive positive behaviour in firms to act professionally and with integrity and contribute towards the finance sector flourishing overall, she said.
Harrison said she is rooting for firms to embrace innovation and better support existing firms, to encourage new people into the industry and to make financial advice more accessible to the end client.
“Every single person and firm working in finance has a responsibility to work towards the good of the industry overall, not just their own business, and compliance firms are in an incredible position to really have a positive impact in this,” she added.
Apricity Compliance, part of The Verve Group, said it is launching a campaign throughout 2022 which aims to make positive change within the compliance industry.
sonia.rach@ft.com
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