A regulatory compliance body is a government agency that exercises independent control by using or imposing conditions, restrictions, and requirements on many areas of activity in the UK.
What Do Regulatory Bodies Do?
Regulatory bodies enforce standards and aim to achieve regulatory compliance within businesses and organisations to ensure awareness of laws, practices, policies, and regulations. These are laid out in UK law to protect the public.
These bodies are generally UK Government public sector departments.
Examples of Regulatory Bodies
Regulatory bodies regarding ‘Business and Finance’ specifically for instance include:
- Financial Conduct Authority (FCA)
- Financial Reporting Council
- Institute of Chartered Accountants in England and Wales
- Office of the Regulator of Community Interest Companies (ORCIC)
- Payment Systems Regulator (PSR)
- Pensions Regulator
- Prudential Regulation Authority (PRA)
- The Office for Professional Body Anti-Money Laundering Supervision (OPBAS)
Whose Responsibility Is It to Comply With Regulatory Compliance Bodies?
It is the responsibility of the business or organisation’s owner/director to deal with any failures by employees to comply or conduct themselves according to the laws and policies of the UK and the company.
For example, the failure of the employer to hold an employee accountable can lead to the employer also becoming culpable for non-compliance. Both employers and employees under UK criminal law can be prosecuted for non-compliance with regulatory body guidelines.
What are Some Examples of Non- Regulatory Compliance?
As an example, some specific forms of non-compliance in the workplace are:
- Disregard for the health and safety regulations such as failure to wear the necessary personal protective equipment (PPE) when undertaking specific tasks.
- Habitually showing up late to shifts or not showing up at all.
- Working within the business without the necessary licensing, certification, qualifications and/or training.
What Happens If a Company Does Not Comply with A Regulatory Body?
Failure to comply with the rules and requirements set down by any regulatory body means there are consequences of ‘non-compliance.’ These can range from the suspension of the company, through to fines and worst case prison terms for the management.
Further Information on Non-Compliance
While non-compliant behaviour can be both intentional and/or unintentional although both actions of non-compliance require accountability of responsible/offending parties.
Therefore, within the workplace, non-compliance refers to employees refusing to follow Health and Safety procedures, codes of conduct, or any other policy or procedure laid down by a company.
Firstly, a fine may be incurred for the most serious safety breaches. The party responsible for non-compliance will have to pay for their own legal representation as well as the prosecuting parties in the form of hundreds of thousands of pounds usually. An expensive outcome for a business when failing to comply with the regulatory body.
Secondly, imprisonment is particularly prevalent in health and safety non-compliance. H&S is enforceable by law in the UK and with non-compliance prosecution can be sought. Sentences of 6 months if prosecuted in a Magistrates court and up to 2 years if prosecuted in a Crown Court.
Some other penalties for non-compliance include:
- Loss of reputation.
- Loss of correct and potential staff.
- Down Time and Loss of Productivity.
Finally, non-compliance and the resulting penalties are avoidable if the policies are enacted correctly. Also, regulatory bodies guidelines and frameworks need to be met satisfactorily.