Compliance-Based Supervision

Traditionally regulators have undertaken ‘compliance-based’ supervision which allocates regulatory resources equally across all regulated entities (rather than prioritising allocation of regulatory resources to those which represent the greatest risk to regulatory objectives, or ‘risk-based’ supervision).

Cadogan Financial has always taken a common sense attitude to ‘compliance-based’ regulation, which is that it makes sense to allocate more regulatory resources to entities which are riskier because they are bigger, or more inexperienced, or undertake activities which entail greater risk or are generally less compliant.

In Zimbabwe Cadogan Financial drafted a collective investment scheme law and regulation and trained the regulator in supervision of collective investment schemes including analysis of scheme reporting and performance comparisons.

In Vietnam Cadogan Financial wrote a series of investment management reporting formats and trained regulators in their analysis and in the identification of trends from compilation and synthesis of regulatory reports, to identify outliers from trends for further examination.

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