Having recognized the compliance system as a key component in internal controls, China Development Financial (CDF) started cooperating with the Taiwan Academy of Banking and Finance last year to hold training sessions for compliance personnel across the island, with the goal of enhancing compliance staff professionalism. CDF Chairman Chia-Juch Chang has specified three criteria for enforcing compliance in an organization: personnel, system, and culture. In addition, CDF will ally with renowned private equity funds to jointly invest in North America-based Simplify Compliance Holdings LLC, which is focused on commercial information services and compliance consultation services.
Chairman Chang stated at The state of Compliance Systems and Talent Demand in Taiwn’s Financial Holding Companies and Banks seminar, jointly held by CDF and the Taiwan Academy of Banking and Finance, the compliance system is important because it minimizes legal risk in an organization and reduces potential penalties, financial losses, and damage to goodwill. He specified three prerequisites for doing a good compliance job. First, a compliance system must be established. Second, professional compliance staff must be in place. Third and most difficult, a corporate compliance culture must be fostered. All this requires resources, which is a necessary investment that will bear fruit.
CDF has extended its emphasis on compliance from establishing a compliance system to investing in Simplify Compliance Holdings LLC, whose business scope includes commercial information services, business management, and providing business process proposals and information consultation. CDF says the investment decision is made on grounds that North America is the single largest market, North America is the most developed market in terms of corporate governance, risk management and compliance, and demand for compliance consultation is growing as the U.S. tightens supervision on all industries. In addition, the global corporate governance risk and compliance markets are growing steadily. Moreover, Simplify Compliance Holdings LLC’s solutions using new technologies, such as big data, systematically help enterprises enforce compliance, reduce risks, and boost business performance.
With regard to establishing a compliance system, Dan T. E. Chan, Head of Compliance at CDF, says compliance staff must fully understand relevant internal and external regulations, financial products, and businesses in order to identify compliance risks. Therefore, CDF and Taiwan Academy of Banking and Finance have been holding training sessions in Taipei and Kaohsiung for CDF compliance personnel since last year, aiming to strengthen employees’ awareness of regulations and laws and to uphold the corporate image to reduce business risks.
The Taiwan Academy of Banking and Finance invites experts and academia to share their professional viewpoints and the latest information on management, laws, and human resources, providing a venue for exchanging opinions and for regulators to gather materials as reference for policy making. Compliance has recently become the focus of high-ranking officers at financial institutions, with the goal of strengthening employees’ awareness of regulations and laws, maintaining corporate image, and reducing business risks. Compliance can only be enforced via a culture of compliance and practical operations.