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In general, compliance means conforming to a rule, such as a specification,
policy Policy is a deliberate system of guidelines to guide decisions and achieve rational outcomes. A policy is a statement of intent and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an or ...
,
standard Standard may refer to: Symbols * Colours, standards and guidons, kinds of military signs * Standard (emblem), a type of a large symbol or emblem used for identification Norms, conventions or requirements * Standard (metrology), an object ...
or
law Law is a set of rules that are created and are enforceable by social or governmental institutions to regulate behavior, with its precise definition a matter of longstanding debate. It has been variously described as a science and as the ar ...
. Compliance has traditionally been explained by reference to
deterrence theory Deterrence theory refers to the scholarship and practice of how threats of using force by one party can convince another party to refrain from initiating some other course of action. The topic gained increased prominence as a military strategy d ...
, according to which punishing a behavior will decrease the violations both by the wrongdoer (specific deterrence) and by others (general deterrence). This view has been supported by
economic theory Economics () is a behavioral science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...
, which has framed punishment in terms of costs and has explained compliance in terms of a cost-benefit equilibrium (Becker 1968). However, psychological research on motivation provides an alternative view: granting rewards (Deci, Koestner and Ryan, 1999) or imposing fines (Gneezy Rustichini 2000) for a certain behavior is a form of extrinsic motivation that weakens intrinsic motivation and ultimately undermines compliance. Regulatory compliance describes the goal that organizations aspire to achieve in their efforts to ensure that they are aware of and take steps to comply with relevant
law Law is a set of rules that are created and are enforceable by social or governmental institutions to regulate behavior, with its precise definition a matter of longstanding debate. It has been variously described as a science and as the ar ...
s, policies, and
regulations Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. Fo ...
. Due to the increasing number of regulations and need for operational transparency, organizations are increasingly adopting the use of consolidated and harmonized sets of compliance controls. This approach is used to ensure that all necessary governance requirements can be met without the unnecessary duplication of effort and activity from resources. Regulations and accrediting organizations vary among fields, with examples such as
PCI-DSS The Payment Card Industry Data Security Standard (PCI DSS) is an information security standard used to handle credit cards from major card brands. The standard is administered by the Payment Card Industry Security Standards Council, and its use ...
and GLBA in the financial industry,
FISMA The Federal Information Security Management Act of 2002 (FISMA, , ''et seq.'') is a United States federal law enacted in 2002 as Title III of the E-Government Act of 2002 (, ). The act recognized the importance of information security to the eco ...
for U.S. federal agencies,
HACCP Hazard analysis and critical control points, or HACCP (), is a systematic preventive approach to food safety from biological hazard, biological, chemical hazard, chemical, and physical hazards in production processes that can cause the finished ...
for the
food Food is any substance consumed by an organism for Nutrient, nutritional support. Food is usually of plant, animal, or Fungus, fungal origin and contains essential nutrients such as carbohydrates, fats, protein (nutrient), proteins, vitamins, ...
and
beverage industry The drink industry (or drinks industry, also known as the beverage industry) produces drinks, in particular alcoholic beverage, ready to drink and soft drink products. Drink production can vary greatly depending on the product being made. Manuf ...
, and the
Joint Commission The Joint Commission is a United States-based nonprofit tax-exempt 501(c) organization that accredits more than 22,000 US health care organizations and programs. The international branch accredits medical services from around the world. A majori ...
and
HIPAA The Health Insurance Portability and Accountability Act of 1996 (HIPAA or the Kennedy– Kassebaum Act) is a United States Act of Congress enacted by the 104th United States Congress and signed into law by President Bill Clinton on August 21, ...
in healthcare. In some cases other compliance frameworks (such as
COBIT COBIT (Control Objectives for Information and Related Technologies) is a framework created by ISACA for information technology (IT) management and IT governance. The framework is business focused and defines a set of generic processes for the ...
) or even standards (
NIST The National Institute of Standards and Technology (NIST) is an agency of the United States Department of Commerce whose mission is to promote American innovation and industrial competitiveness. NIST's activities are organized into physical s ...
) inform on how to comply with regulations. Some organizations keep compliance data—all data belonging or pertaining to the enterprise or included in the law, which can be used for the purpose of implementing or validating compliance—in a separate store for meeting reporting requirements. Compliance software is increasingly being implemented to help companies manage their compliance data more efficiently. This store may include calculations, data transfers, and
audit An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon." Auditing al ...
trails.


Standards

The
International Organization for Standardization The International Organization for Standardization (ISO ; ; ) is an independent, non-governmental, international standard development organization composed of representatives from the national standards organizations of member countries. M ...
(ISO) and its ISO 37301:2021 (which deprecates ISO 19600:2014) standard is one of the primary international standards for how businesses handle regulatory compliance, providing a reminder of how compliance and risk should operate together, as "colleagues" sharing a common framework with some nuances to account for their differences. The ISO also produces international standards such as
ISO/IEC 27002 ISO/IEC 27002 is an information security standard published by the International Organization for Standardization (ISO) and by the International Electrotechnical Commission (IEC), titled ''Information security, cybersecurity and privacy protect ...
to help organizations meet regulatory compliance with their security management and assurance best practices. Some local or international specialized organizations such as the
American Society of Mechanical Engineers The American Society of Mechanical Engineers (ASME) is an American professional association that, in its own words, "promotes the art, science, and practice of multidisciplinary engineering and allied sciences around the globe" via "continuing edu ...
(ASME) also develop standards and regulation codes. They thereby provide a wide range of rules and directives to ensure compliance of the products to safety, security or design standards.


By nation

Regulatory compliance varies not only by industry but often by location. The financial, research, and pharmaceutical regulatory structures in one country, for example, may be similar but with particularly different nuances in another country. These similarities and differences are often a product "of reactions to the changing objectives and requirements in different countries, industries, and policy contexts".


Australia

Australia's major financial services regulators of deposits, insurance, and
superannuation A pension (; ) is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work. A pension may be either a "Defined benefit pension pla ...
include the
Reserve Bank of Australia The Reserve Bank of Australia (RBA) is Australia's central bank and banknote issuing authority. It has had this role since 14 January 1960, when the ''Reserve Bank Act 1959'' removed the central banking functions from the Commonwealth Bank. Th ...
(RBA), the
Australian Prudential Regulation Authority The Australian Prudential Regulation Authority (APRA) is a statutory authority of the Australian Government and the prudential regulator of the Australian financial services industry. APRA was established on 1 July 1998 in response to the recom ...
(APRA), the
Australian Securities & Investments Commission The Australian Securities and Investments Commission (ASIC) is an independent commission of the Australian Government tasked as the national corporate regulator. ASIC's role is to regulate company and financial services and enforce laws to pro ...
(ASIC), and the
Australian Competition & Consumer Commission The Australian Competition and Consumer Commission (ACCC) is the chief competition regulator of the Government of Australia, located within the Department of the Treasury. It was established in 1995 with the amalgamation of the Australian Tra ...
(ACCC). These regulators help to ensure financial institutes meet their promises, that transactional information is well documented, and that competition is fair while protecting consumers. The APRA in particular deals with superannuation and its regulation, including new regulations requiring trustees of superannuation funds to demonstrate to APRA that they have adequate resources (human, technology and financial), risk management systems, and appropriate skills and expertise to manage the superannuation fund, with individuals running them being "fit and proper". Other key regulators in Australia include the
Australian Communications & Media Authority The Australian Communications and Media Authority (ACMA) is an Australian government statutory authority within the Communications portfolio. ACMA was formed on 1 July 2005 with the merger of the Australian Broadcasting Authority and the Aust ...
(ACMA) for broadcasting, the internet, and communications; the
Clean Energy Regulator The Clean Energy Regulator (CER) is an Australian independent statutory authority responsible for implementing legislation to reduce carbon emissions and increase the use of clean energy. It was established on 2 April 2012 through the ''Clean E ...
for "monitoring, facilitating and enforcing compliance with" energy and carbon emission schemes; and the
Therapeutic Goods Administration The Therapeutic Goods Administration (TGA) is the medicine and therapeutic regulatory agency of the Australian Government. As part of the Department of Health, Disability and Ageing, the TGA regulates the safety, quality, efficacy and advertisi ...
for drugs, devices, and biologics; Australian organisations seeking to remain compliant with various regulations may turn to AS ISO 19600:2015 (which supersedes AS 3806-2006). This standard helps organisations with compliance management, placing "emphasis on the organisational elements that are required to support compliance" while also recognizing the need for
continual improvement A continual improvement process, also often called a continuous improvement process (abbreviated as CIP or CI), is an ongoing effort to improve products, services, or processes. These efforts can seek " incremental" improvement over time or "brea ...
.


Canada

In
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
, federal regulation of deposits, insurance, and
superannuation A pension (; ) is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work. A pension may be either a "Defined benefit pension pla ...
is governed by two independent bodies: the
OSFI The Office of the Superintendent of Financial Institutions (OSFI; , BSIF) is an independent agency of the Government of Canada reporting to the Minister of Finance created "to contribute to public confidence in the Canadian financial system". ...
through the Bank Act, and
FINTRAC The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC; ) is the national financial intelligence intelligence agency, agency of Canada. FINTRAC was established in 2000 under the Proceeds of Crime (Money Laundering) Act to fac ...
, mandated by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2001 (PCMLTFA). These groups protect consumers, regulate how risk is controlled and managed, and investigate illegal action such as money laundering and terrorist financing. On a provincial level, each province maintain individuals laws and agencies. Unlike any other major federation, Canada does not have a securities regulatory authority at the federal government level. The provincial and territorial regulators work together to coordinate and harmonize regulation of the Canadian capital markets through the Canadian Securities Administrators (CSA). Other key regulators in Canada include the
Canadian Food Inspection Agency The Canadian Food Inspection Agency (CFIA; ) is a regulatory agency that is dedicated to the safeguarding of food, plants, and animals (FPA) in Canada, thus enhancing the health and well-being of Canada's people, environment and economy. The age ...
(CFIA) for food safety, animal health, and plant health;
Health Canada Health Canada (HC; )Health Canada is the applied title under the Federal Identity Program; the legal title is Department of Health (). is the Structure of the Canadian federal government#Departments, with subsidiary units, department of the Gove ...
for public health; and
Environment and Climate Change Canada Environment and Climate Change Canada (ECCC; )Environment and Climate Change Canada is the applied title under the Federal Identity Program; the legal title is Department of the Environment (). is the department of the Government of Canada res ...
for environment and sustainable energy. Canadian organizations seeking to remain compliant with various regulations may turn to ISO 19600:2014, an international compliance standard that "provides guidance for establishing, developing, implementing, evaluating, maintaining and improving an effective and responsive compliance management system within an organization". For more industry specific guidance, e.g., financial institutions, Canada's E-13 Regulatory Compliance Management provides specific compliance risk management tactics.


European Union

Regulatory compliance in the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
(EU) is governed by a harmonized legal framework designed to ensure consistency across member states while allowing for national implementation. EU compliance regulations cover various industries, including consumer product safety, financial services, environmental protection, and data privacy. The
General Product Safety Regulation The General Product Safety Regulation (GPSR) is a European regulation (European Union), regulation on consumer protection. It replaces Directive 2001/95/EC on general product safety. The regulation is intended to ensure that products placed on the ...
(GPSR) establishes a unified safety framework for consumer products across the EU, requiring manufacturers to conduct risk assessments, maintain traceability documentation, and meet safety compliance standards before placing products on the market. The GPSR applies to all
consumer products A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike an intermediate good, which is used to produce other goods. A microwave oven or a bicycle is a final good. Whe ...
made available in the EU unless covered by sector-specific regulations, such as
medical devices A medical device is any device intended to be used for medical purposes. Significant potential for hazards are inherent when using a device for medical purposes and thus medical devices must be proved safe and effective with reasonable assura ...
or
food Food is any substance consumed by an organism for Nutrient, nutritional support. Food is usually of plant, animal, or Fungus, fungal origin and contains essential nutrients such as carbohydrates, fats, protein (nutrient), proteins, vitamins, ...
products. The regulation extends to products sold through
e-commerce E-commerce (electronic commerce) refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile co ...
platforms, requiring online marketplaces to ensure that only compliant products are listed. Fulfillment service providers are also included as economic operators, making them responsible for product safety compliance in certain cases. For business compliance, the EU’s regulatory approach is guided by the New Legislative Framework (NLF) and various sector-specific directives and regulations. Businesses must comply with EU product conformity assessments and affix the
CE marking The presence of the logo on Product (business), commercial products indicates that the Manufacturing, manufacturer or importer affirms the goods' conformity with European Environment, health and safety, health, safety, and environmental prote ...
to indicate compliance with essential safety and performance standards. Financial compliance is enforced through regulations such as the Markets in Financial Instruments Directive (MiFID II) and the General Data Protection Regulation (GDPR), which set strict requirements for financial transparency, consumer protection, and data security. The EU Legislation Compliance framework ensures that organizations operate within the legal boundaries of EU directives, helping public and private entities manage regulatory risks efficiently.
Companies A company, abbreviated as co., is a legal entity representing an association of legal people, whether natural, juridical or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specifi ...
operating in the EU must stay updated on evolving compliance requirements, as non-compliance can lead to fines, product recalls, or restrictions on market access.


The Netherlands

The financial sector in the Netherlands is heavily regulated. The Dutch Central Bank (De Nederlandsche Bank N.V.) is the prudential regulator while the Netherlands Authority for Financial Markets (AFM) is the regulator for behavioral supervision of financial institutions and markets. A common definition of compliance is:'Observance of external (international and national) laws and regulations, as well as internal norms and procedures, to protect the integrity of the organization, its management and employees with the aim of preventing and controlling risks and the possible damage resulting from these compliance and integrity risks'.


India

In India, compliance regulation takes place across three strata: Central, State, and Local regulation. India veers towards central regulation, especially of financial organizations and foreign funds. Compliance regulations vary based on the industry segment in addition to the geographical mix. Most regulation comes in the following broad categories: economic regulation, regulation in the public interest, and environmental regulation. India has also been characterized by poor compliance - reports suggest that only around 65% of companies are fully compliant to norms.


Singapore

The
Monetary Authority of Singapore The Monetary Authority of Singapore or (MAS), is the central bank and financial regulatory authority of Singapore. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as ...
is
Singapore Singapore, officially the Republic of Singapore, is an island country and city-state in Southeast Asia. The country's territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It is about one degree ...
's
central bank A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...
and financial regulatory authority. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance.


United Kingdom

There is considerable regulation in the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
, some of which is derived from
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
legislation. Various areas are policed by different bodies, such as the
Financial Conduct Authority The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom. It operates independently of the UK Government and is financed by charging fees to members of the financial services industry. The FCA regulates financi ...
(FCA),
Environment Agency The Environment Agency (EA) is a non-departmental public body, established in 1996 and sponsored by the United Kingdom government's Department for Environment, Food and Rural Affairs, with responsibilities relating to the protection and enha ...
,
Scottish Environment Protection Agency The Scottish Environment Protection Agency (SEPA; ) is Scotland's Environmental regulation, environmental regulator and national flood forecasting, flood warning and strategic flood risk management authority.Information Commissioner's Office The Information Commissioner's Office (ICO) is a non-departmental public body which reports directly to the Parliament of the United Kingdom and is sponsored by the Department for Science, Innovation and Technology. It is the independent regu ...
,
Care Quality Commission The Care Quality Commission (CQC) is an executive non-departmental public body of the Department of Health and Social Care of the United Kingdom. It was established in 2009 to regulate and inspect health and social care providers in England. It ...
, and others: see
List of regulators in the United Kingdom The following is a list of regulators in the UK. Regulators exercise regulatory or supervisory authority over a variety of endeavours. In addition, local authorities in the UK provide regulatory functions in a number of areas. Professional ass ...
. Important compliance issues for all organizations large and small include the
Data Protection Act 2018 The Data Protection Act 2018 (c. 12) is a United Kingdom act of Parliament (UK) which updates data protection laws in the UK. It is a national law which complements the European Union's General Data Protection Regulation (GDPR) and replaces the D ...
and, for the public sector,
Freedom of Information Act 2000 The Freedom of Information Act 2000 (c. 36) is an Act of the Parliament of the United Kingdom that creates a public right of access to information held by public authorities. It is the implementation of freedom of information legislation in t ...
.


United States

Corporate scandals and breakdowns such as the
Enron Enron Corporation was an American Energy development, energy, Commodity, commodities, and services company based in Houston, Texas. It was led by Kenneth Lay and developed in 1985 via a merger between Houston Natural Gas and InterNorth, both re ...
case of
reputational risk Reputational damage is the loss to financial capital, social capital and/or market share resulting from damage to an organization's reputation. This is often measured in lost revenue, increased operating, capital or regulatory costs, or destructi ...
in 2001 have increased calls for stronger compliance and regulations, particularly for publicly listed companies. The most significant recent statutory changes in this context have been the
Sarbanes–Oxley Act The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act, , also known as the "Public Company Accounting Reform and Investor Protectio ...
developed by two U.S. congressmen, Senator
Paul Sarbanes Paul Spyros Sarbanes (; February 3, 1933 – December 6, 2020) was an American politician and attorney from Maryland. A member of the Democratic Party (United States), Democratic Party, he served in both chambers of the United States Congr ...
and Representative Michael Oxley in 2002 which defined significantly tighter personal responsibility of corporate top management for the accuracy of reported financial statements; and the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Office of Foreign Assets Control (OFAC) is an agency of the United States Department of the Treasury under the auspices of the Under Secretary of the Treasury for Terrorism and Financial Intelligence. OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign states, organizations, and individuals. Compliance in the U.S. generally means compliance with laws and regulations. These laws and regulations can have criminal or civil penalties. The definition of what constitutes an effective compliance plan has been elusive. Most authors, however, continue to cite the guidance provided by the
United States Sentencing Commission The United States Sentencing Commission is an independent agency of the judicial branch of the U.S. federal government. It is responsible for articulating the U.S. Federal Sentencing Guidelines for the federal courts. The Commission promulgat ...
in Chapter 8 of the Federal Sentencing Guidelines. On October 12, 2006, the U.S.
Small Business Administration The United States Small Business Administration (SBA) is an independent agency of the United States government that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and str ...
re-launched
Business.gov Business.gov is sponsored by the U.S. Small Business Administration to provide small business owners with access to federal, state and local government resources from a single access point. History Business.gov was launched in 1997 as the U.S. Bus ...
(later Business.USA.gov and finally SBA.Gov) which provides a single point of access to government services and information that help businesses comply with government regulations. The U.S. Department of Labor, Occupational Health and Safety Administration (OSHA) was created by
Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...
to assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education, and assistance. OSHA implements laws and regulations regularly in the following areas, construction, maritime, agriculture, and recordkeeping. The
United States Department of Transportation The United States Department of Transportation (USDOT or DOT) is one of the executive departments of the U.S. federal government. It is headed by the secretary of transportation, who reports directly to the president of the United States a ...
also has various laws and regulations requiring that prime contractors when bidding on federally funded projects engage in good faith effort compliance, meaning they must document their outreach to certified disadvantaged business enterprises.


Challenges

Data retention Data retention defines the policies of persistent data and records management for meeting legal and business data archival requirements. Although sometimes interchangeable, it is not to be confused with the Data Protection Act 1998. The differe ...
is a part of regulatory compliance that is proving to be a challenge in many instances. The security that comes from compliance with industry regulations can seem contrary to maintaining user privacy. Data retention laws and regulations ask data owners and other service providers to retain extensive records of user activity beyond the time necessary for normal business operations. These requirements have been called into question by privacy rights advocates. Compliance in this area is becoming very difficult. Laws like the CAN-SPAM Act and
Fair Credit Reporting Act The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 ''et seq.'', is federal legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. It was intended ...
in the U.S. require that businesses give people the
right to be forgotten The right to be forgotten (RTBF) is the right to have private information about a person be removed from Internet searches and other directories in some circumstances. The issue has arisen from desires of individuals to "determine the developmen ...
. In other words, they must remove individuals from marketing lists if it is requested, tell them when and why they might share personal information with a third party, or at least ask permission before sharing that data. Now, with new laws coming out that demand longer data retention despite the individual’s desires, it can create some real difficulties. Money laundering and terrorist financing pose significant threats to the integrity of the financial system and national security. To combat these threats, the EU has adopted a risk-based approach to Anti-Money Laundering and
Combating the Financing of Terrorism Terrorism financing is the provision of funds or providing financial support to individual terrorists or non-state actors. Most countries have implemented measures to counter terrorism financing (CTF) often as part of their money laundering laws ...
(AML/CFT) that relies on cooperation and coordination between EU and national authorities. In this context
risk-based regulation
refers to the approach of identifying and assessing potential risks of money laundering and terrorist financing and implementing regulatory measures proportional to those risks. However, the shared enforcement powers between EU and national authorities in the implementation and enforcement of AML/CFT regulations can create legal implications and challenges. The potential for inconsistent application of AML regulations across different jurisdictions can create regulatory arbitrage and undermine the effectiveness of AML efforts. Additionally, a lack of clear and consistent legal frameworks defining the roles and responsibilities of EU and national authorities in AML enforcement can lead to situations where accountability is difficult to establish.


Financial compliance

The U.K. Corporate Governance Code (formerly the Combined Code) is issued by the
Financial Reporting Council The Financial Reporting Council (FRC) is an independent regulator in the UK and Ireland based in London Wall in the City of London, responsible for regulating auditors, accountants and actuaries, and setting the UK's Corporate Governance and ...
(FRC) and "sets standards of good practice in relation to board leadership and effectiveness, remuneration, accountability, and relations with shareholders". All companies with a Premium Listing of equity shares in the U.K. are required under the Listing Rules to report on how they have applied the Combined Code in their annual report and accounts. (The Codes are therefore most similar to the U.S.'
Sarbanes–Oxley Act The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act, , also known as the "Public Company Accounting Reform and Investor Protectio ...
.) The U.K.'s regulatory framework requires that all its publicly listed companies should provide specific content in the core financial statements that must appear in a yearly report, including balance sheet, comprehensive income statement, and statement of changes in equity, as well as cash flow statement as required under international accounting standards. It further demonstrates the relationship that subsists among shareholders, management, and the independent audit teams. Financial statements must be prepared using a particular set of rules and regulations hence the rationale behind allowing the companies to apply the provisions of company law, international financial reporting standards (IFRS), as well as the U.K. stock exchange rules as directed by the FCA. It is also possible that shareholders may not understand the figures as presented in the various financial statements, hence it is critical that the board should provide notes on accounting policies as well as other explanatory notes to help them understand the report better.


See also

*
Business Motivation Model The Business Motivation Model (BMM) in enterprise architecture provides a scheme and structure for developing, communicating, and managing business plans in an organized manner. Specifically, the Business Motivation Model does all the following: * ...
- A standard for recording governance and compliance activities *
Chief compliance officer The chief compliance officer (CCO) is a corporate executive within the C-suite responsible for overseeing and managing regulatory compliance issues within an organization. The CCO typically reports to the chief executive officer or the chief leg ...
*
Corporate social responsibility Corporate social responsibility (CSR) or corporate social impact is a form of international private business industry self-regulation, self-regulation which aims to contribute to societal goals of a philanthropy, philanthropic, activist, or chari ...
*
Environmental compliance Environmental compliance means conforming to environmental laws, regulations, standards and other requirements such as site permits to operate. In recent years, environmental concerns have led to a significant increase in the number and scope o ...
*
Governance, risk management, and compliance Governance, risk, and compliance (GRC) is the term covering an organization's approach across these three practices: governance, risk management, and compliance amongst other disciplines. The first scholarly research on GRC was published in 2007 ...
*
International regulation "International regulation" is regulation that occurs at the international level, often exercised by international organizations. An advantage of international regulation is that it allows localities and the individuals in them to be held accountable ...
*
Professional ethics Professional ethics encompass the personal and corporate standards of behavior expected of professionals. The word professionalism originally applied to vows of a religious order. By no later than the year 1675, the term had seen secular appli ...
* Regulatory technology * EU GPSR Regulation


References

{{Authority control Regulatory compliance