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Glossary > Finance > Regulatory And Compliance > General
Legal Disclaimers

Regulatory Compliance

Regulatory Compliance, in plain English, means following all the rules and laws set by government agencies or industry authorities to make sure a business operates legally and ethically. It involves meeting all the requirements, submitting reports, and keeping records as mandated by the regulations in place.

Example #1

An investment firm ensuring they disclose all relevant information to clients as required by the Securities and Exchange Commission (SEC).

Example #2

A bank verifying the identity of customers according to Know Your Customer (KYC) regulations.

Misuse

A misuse of regulatory compliance could involve a company purposefully hiding financial information to mislead investors, which could lead to fraudulent activities, putting consumers and investors at risk. It's crucial to protect against misuse to prevent unfair practices and uphold transparency in the marketplace.

Benefits

An example of the benefits of regulatory compliance is that it helps safeguard consumers' interests by ensuring that companies are held accountable for their actions. For instance, regulations that require businesses to provide clear and accurate information to customers empower consumers to make informed decisions.

Conclusion

Regulatory Compliance is essential for maintaining a fair and transparent marketplace. By adhering to regulations, businesses protect consumers and employees, promote trust, and contribute to a level playing field where everyone can participate with confidence.

Related Terms

SECKYC

See Also

Beneficial OwnershipKnow Your Customer (KYC)Source Of FundsSuspicious Activity Report (SAR)Transaction MonitoringUltimate Beneficial Owner (UBO)Branch Office InspectionsCRD NumberContinuing Education (CE) RequirementsContinuing Education (CE)Form BDForm U4Form U5Uniform Application For Securities Industry Registration Or Transfer (Form U4)Beneficial OwnerCustomer Due Diligence (CDD)Enhanced Due Diligence (EDD)High-Risk CustomerNegative News ScreeningNon-Face-to-Face VerificationPolitically Exposed Person (PEP)Sanctions ScreeningSource Of WealthTransaction MonitoringUltimate Beneficial Owner (UBO)Insider TradingRule 606SEC Rule 15c3-3SEC Rule 17a-4Whistleblower ProgramAMLCompliance ProgramSarbanes-Oxley

Last Modified: 4/29/2024
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