Embracing compliance to bring comfort to clients
Conrad Lim of LGT Bank
May 31, 2017
In a video interview, Conrad Lim of LGT Bank discusses the critical role and considerations for compliance within private banking today.
Compliance has clearly evolved into a ‘valid’ profession within private banking. “It is an essential part of doing business today,” explains Conrad Lim, managing director and deputy chief executive officer of LGT Bank in Singapore.
Given the complexity of the business, while bankers are the most visible as the client-facing individual, regulators expect a quality of delivery and execution that an individual on their own cannot possibly deliver.
The middle and back offices, including settlement and operations, therefore, are all key components of compliance, says Lim.
Compliance represents the safe-keeping of the industry, he adds – the assurance that the organisation is adhering to the minimum standards imposed on it by the jurisdiction within which it operates.
Size matters
According to Lim, big doesn’t mean better from a compliance or risk management perspective. “The downside of [bigger] size can be complexity [when it comes to compliance],” he explains.
People in bigger banks sometimes get divided into silos, which isn’t helpful for the business or for clients. Plus, he adds, operational efficiencies don’t stop for any individual client.
By contrast, in smaller organisations, Lim says there is often a lot more attention given to individual clients. “A client’s personal preference can be taken into account more readily.”
The right background
Despite the greater knowledge and information available, it is difficult to get compliance right all the time. As a result, there is still a need for HNW clients to rely on experienced practitioners to walk them through the complex and volatile financial landscape.
Lim believes that organisations therefore need individuals working within the compliance function who are from the right background – whether from legal or accounting, or another profession – to interpret regulations and relevant data.
“The key foundations for anyone who wants to work in compliance are the ability to emphathise with colleagues, to have an inquisitive mind and to want to problem-solve,” he explains.
Managing Director & Deputy Chief Executive Officer, Senior Regulatory Counsel Asia at LGT Bank
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