Scott Tominaga Discusses The Importance of Compliance in Finance


The modern-day business environment is increasingly complex. It involves strong regulations that are aimed at protecting all parties that are involved in business activities. This is the reason why companies have to be extremely careful in making sure that their activities directly adhere to all the legal requirements of their industry. As legal compliance tends to free up companies from legal issues that can cause costly monetary penalties, it is an important aspect of finance-based firms. Compliance plays an important role in anticipating and preventing many disputes. Being an experienced industry professional, Scott Tominaga is a great candidate to shed more light on this topic.

Financial compliance basically implies to the regulation and enforcement of the laws and rules in the world of finance and the capital markets. It tends to range through the entire financial spectrum, right from the investment banking practices to retail banking practices. Financial compliance tends to cover an expansive spectrum.

The key task of the compliance department of any financial services company is to keep a close watch on the important financial business services, while making sure that they remain connected to diverse external regulations and internal controls effectively. The key job of a compliance officer is to work with both the managers and the employees and try to manage the regulatory risk closely. There are multiple financial services companies that have branches overseas. In this situation, they have to translate their compliance related materials into a certain language. The relevant company owner must also seek input from the foreign offices when it comes to the effectiveness of the business’s training materials.  One of the key jobs of the compliance department is to focus on five areas of responsibility, which include identification, detection, prevention, monitoring, advisory, and resolution. The department would essentially identify the risks that a business is facing, and subsequently offer advice on addressing and preventing them.  Implementation of the control system for the purpose of protecting a business from multiple types of risks is also done by the compliance department.

Compliance services aid companies to improve the operations and overall safety of their business Statutory compliance in India broadly involves meeting the legal obligations of a company, as well as protecting the safety, welfare, and health of others. Paying taxes or obtaining a business license are a few common examples of compliance. The key purpose of compliance tends to become all the more evident when companies start to expand and the issues at hand become all the more complex.  The responsibilities associated with employees will increase in terms of hiring, salaries, payroll, firing and more. In case a business owner is unable to meet the legal obligations competently, then it will become easy for the rival companies to sue the business. Compliance is always not easy to understand, and is often confusing for newcomers. However, industry experts like Scott Tominaga are well-versed with key elements associated with compliance in the financial service sector.

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