Compliance capability maturity model as an instrument of change in response to the increasing regulatory administrative sanctions
The world is experiencing an uptick in regulatory administrative sanctions issued by regulatory authorities due to various compliance, governance and risk deficiencies (in some instances malfeasance) experienced by different licensees. Locally the FSCA’s Regulatory Actions Report for 2023/4 and the FIC’s Annual Report 2023/4 are obvious points of reference in this regard, amongst others.
Regulatory sanctions are one of the data points that demonstrate the regulatory health and integrity of a particular sector or system. The more regulatory sanctions there are, the more downward the trend of confidence levels in that particular sector. Rory Doyle, Head of Financial Crime Policy at Fenergo on the release of its half-year annual findings on global financial institution enforcement actions noted, “These penalties disrupt investor confidence, negatively impact share price, and damage companies’ reputations – consequences many firms, regardless of their size, cannot afford to shoulder.”
