The Evolution of Compliance Function and Compliance Risk in Investment Services

191 Pages Posted: 10 Aug 2009

See all articles by Paola Musile Tanzi

Paola Musile Tanzi

SDA Bocconi; Università degli Studi di Perugia

Adalberto Alberici

Università Statale di Milano - Dipartimento di Economia Politica e Aziendale

Giampaolo Gabbi

SDA Bocconi School of Management

Manuela Gallo

Dipartimento di Discipline Giuridiche e Aziendali dell’Università degli Studi di Perugia

Loris Nadotti

Dipartimento di Discipline Giuridiche e Aziendali dell’Università degli Studi di Perugia

Raoul Pisani

SDA Bocconi

Maurizio Poli

SDA Bocconi

Daniele Angelo Previati

University Rome III - Department of Business and Law

Paola Schwizer

University of Parma

Valeria Stefanelli

University of Salento - Department of Economic Science

Renata Trinca Colonel

SDA Bocconi

Date Written: June 2009

Abstract

This research focuses on the advancement of the Compliance function within banks, investment and insurance companies and on the effect of applying Community regulations as called for by the MiFID Directive. Eighty four financial intermediaries: banks, investment companies and insurance companies took part in this research. Two criteria have been used to interpret the results: 1) the prevailing workability within international and domestic intermediaries; 2) the intermediary typology, creating a distinction between banks, and of these cooperative banks, other financial intermediaries (investment companies) and insurance companies. The research continues what was carried out during 2007, where thirty five intermediaries, namely banks and investment companies were appraised. The present research broadens the spectrum to also include insurance companies. The data was collected using a questionnaire created and analysed by a group of researchers of the Research Division of SDA Bocconi School of Management. The collection phase of the data began in January 2009 and ended in March 2009. The research activity was carried out with the support of SIA SSB Group and in collaboration with AICOM (Associazione Italiana Compliance). With reference to the contents within this study is divided into four research areas: 1) positioning of the Compliance function within the organization; 2) the roles attributed to the Compliance function; 3) the methods used to measure, transfer and mitigate Compliance risk within investment services; 4) how the Compliance function interacts within and outside its structure. A fifth section is included in this report which focuses on the methodology of the research. The research is divided into three parts: I) the main progression steps of the Compliance function within financial intermediaries; II) how the MiFID compliant rules of the game have evolved in the investment services; III) the aim, the sample under investigation and the research methodology.

Keywords: Compliance, Financial services, Regulation, MIFID

JEL Classification: G21, G22, G23, G28

Suggested Citation

Musile Tanzi, Paola and Alberici, Adalberto and Gabbi, Giampaolo and Gallo, Manuela and Nadotti, Loris and Pisani, Raoul and Poli, Maurizio and Previati, Daniele Angelo and Schwizer, Paola and Stefanelli, Valeria and Trinca Colonel, Renata, The Evolution of Compliance Function and Compliance Risk in Investment Services (June 2009). Available at SSRN: https://ssrn.com/abstract=1446759 or http://dx.doi.org/10.2139/ssrn.1446759

Paola Musile Tanzi

SDA Bocconi ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

Università degli Studi di Perugia ( email )

Via Pascoli, 20
Perugia, 60123
Italy

Adalberto Alberici

Università Statale di Milano - Dipartimento di Economia Politica e Aziendale ( email )

Via Festa del Perdono, 7
20122 Milano
Italy

Giampaolo Gabbi (Contact Author)

SDA Bocconi School of Management ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

Manuela Gallo

Dipartimento di Discipline Giuridiche e Aziendali dell’Università degli Studi di Perugia ( email )

Perugia
Italy

Loris Nadotti

Dipartimento di Discipline Giuridiche e Aziendali dell’Università degli Studi di Perugia ( email )

Perugia
Italy

Raoul Pisani

SDA Bocconi ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

Maurizio Poli

SDA Bocconi ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

Daniele Angelo Previati

University Rome III - Department of Business and Law ( email )

Via S. D'Amico 77
Rome, 00145
Italy
+390657335630 (Phone)
+390657335797 (Fax)

Paola Schwizer

University of Parma ( email )

Via J.F. Kennedy 6
Parma, 43100
Italy

Valeria Stefanelli

University of Salento - Department of Economic Science ( email )

Via per Monteroni - Ecotekne
Lecce, 73100
Italy

Renata Trinca Colonel

SDA Bocconi ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

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