Compliance requirements and costs often hold back or slow down the growth of startups, and delaying compliance spend until absolutely necessary therefore may appear an attractive option.
We consider good compliance to be proactive, forward-thinking implementation of systems and controls designed to mitigate the chance of risks coming to pass. Bad compliance is often purely reactive and comes as a response to a risk coming to pass. It often requires a rushed response to requests from the regulator with information only becoming available as the event unfolds.
In the UK, in our experience, reactive compliance often costs a lot more than good, proactive compliance implemented when the firm has time to consider possible risks and solutions to mitigate them. An early plan for managing compliance can therefore save a firm millions in reactive compliance spend over the life of the firm.
Learn More: UK Founder Series: Financial Services Startups