Regulation and Compliance

Regulation and Compliance - Articles & White Papers

The Savvy Investor Regulation and Compliance section captures the latest articles, white papers, thought leadership, and commentary on the ever-advancing needs for accountability and transparency, whether it is compliance in portfolio construction, robo-advice, ESG disclosures to tax considerations, pension asset allocation and technological/digital assets.

Regulation has become a matter of great public interest following the Global Financial Crisis 2008. It exists for the sole protection of the parties engaged in business relations that champion economic development and financial stability. Financial regulation enforces the robust legalities within the financial industry, ranging from banking practices, transactional data usage and storage, transparency to the execution, and distribution of information to the wider public...


Compliance is the adherence to regulation. It covers legal requirements, guidelines and corporate governance which supports government legislation, financial industry regulation and central bank policies. Importance is placed on compliant conduct to help ensure markets are free from systematic risk, embody transparency and remain efficient.

Both regulation and compliance impact institutional investment firms, financial markets, and the public. Policy coverage can widely vary from advertising, customer communications, conflicts of interest, to financial disclosures, client assets and risk management, and standardisation. Successful governance helps to prevent market failure, promotes macroeconomic stability, investor protection, and mitigates the effects of financial failures on the economy.

Regulation and compliance pertain to:

  • Money Laundering e.g., Placement, Layering, Integration, Terrorism Act 2000, Proceeds of Crime Act 2002
  • Capital Requirements e.g., Capital Requirement Directive, Solvency II, Ring-fencing, Accountability
  • Regulations e.g., FSA 2021, FCA, PRA, FSMA 2000, ESMA, U.K. BMR, PSR, EU MiFIR, MiFID, MiFID II, CRR, CRD, SSE, EMIR, COBS, SFDR, TCFD
  • Basel Accords e.g., CAMEL, Basel Market Risk
  • Governance e.g., IASB, IAS, IFRS, Sarbanes-Oxley, Professional conduct, ESG Disclosures
  • Finance e.g., Markets, Corporate, Personal, Public (Housing, Pensions etc.)

Worldwide, synergistic alliances are formed in the aspects of financial control, with all nations attempting to harmonise similar compatibility with regulatory authority. Some legislation may in fact be unique in its jurisdiction within the countries, for example the U.K. BMR, whereas others are broader for EU-compliant transparency and standardisation.

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