I retired in the last year and my 45 odd years career transition from an angry young man to a grumpy oul fella has been seamless; therefore sucking lemons and throwing a few rocks back on behalf of the long-suffering Ellsio tribe (cuddlier name to combat acronym fatigue), here goes. But first, being free at last and formally unconnected to any regulated firm, the views below are absolutely my own, but they hopefully reflect a legitimate, if personal, perspective.

ACOI’s subsequent growth was not at all expected on that filthy dark November night in 2002 when Niall Gallagher, with Flan O’Sullivan and Dermot Mullen, called an inaugural meeting attended by under 100 hardy souls in Irish Life’s HQ. We predicted with unerring inaccuracy an eventual membership of 150 – natural-born Compliance Officers do not often make instinctive marketeers or salespeople. Sometimes it is great to be wrong – we had multiples of that number within months.

Why the Lonely Compliance Officer?

In 2002, the compliance function was mainly a banking/investment role and often double-jobbed by e.g. legal, regulatory reporting/finance. The then low status of compliance was illustrated in macho parlance as the mushroom patch, business prevention unit, MI5, zero charisma division etc., yawn.

Job description? if we had only pocketed €100 anytime, we heard these classics:

‘This is the real world, we have a business to run and it is your job to … keep me out of jail…be the conscience of the company…have NO fines or sanctions, apply a light touch. Thanks’.

But exciting developments were afoot across businesses, from globalisation, technology and innovation, (from USA, EU and IFSC) with a growing focus on the consumer as wealth and choice grew. Before, financial and size metrics were the only marks of success, shareholders were the only acknowledged stakeholders with customers’ interests subordinated to theirs’. Financial stability was all; regulators feared systemic financial collapse – and who would argue that after the crash?

Late 2002 - what was happening or talked about?

International public/political concern at the Enron collapse, SARS, dot.com bubble and post 9/11 attention on AML/Anti-Terrorist Financing and the coming euro. And at home legislating for IFSRA to regulate all financial institutions/ agents, extend solvency, prudential, fitness and probity, client money/ conduct of business and consumer protection requirements – following some collapses and customer detriment debacles. Significant scope and complexity of regulation – principles versus rules. IFSC continuing to balloon and the Celtic Tiger a growing cub.

Relentless pressure for results, growth, new products and services, M&A and geographical expansion all contributed to the bad decisions made, profiteering, excessive remuneration, customer detriment and appalling risk management. This bad face of the Celtic Tiger placed intolerable pressures on all and the arrogance and aggression of many senior management figures resulted in efforts to short circuit regulatory requirements. Regulation (and compliance professionals) were blamed for blocking progress. ‘Are we over-regulating’ was heard from (now former disgraced or otherwise departed) CEOs and executives, unintentionally supported by understandable media/public enthusiasm – which also undermined compliance.

Who was the ACOI founded for and what were the challenges?

The founding mothers and fathers decided membership should be individual and not corporate-based thereby preventing larger corporates unduly influencing the direction of the compliance profession/community. At an early strategy forum called by Niall Gallagher, our first Chair, we had earnest discussion about our purpose and whom did we serve.

The loneliness of the long-distance Compliance Officer reflected the culture and not necessarily the size of the firm – the Elssio could be more isolated in crowded corporate offices than on a desert island, viz. a room with a regulator. Continuing the film theme, our Mission Impossible was to serve Elssio no matter where or for whom she or he worked. Thus, the Elssio was born.

Context

For illustration purposes, at the extreme levels in those times, Elssios were only grudgingly included in product launches, not always provided with sensitive information, excluded from key decisions, under-resourced and then blamed for compliance failures.

The role was seen as sign-off. Visibility to the board was scant and then only if required. Clear preference for good news stories at board and management level otherwise kept compliance matters off the menu.

Relentless pressure for results, growth, new products and services, M&A and geographical expansion all contributed to the bad decisions made, profiteering, excessive remuneration, customer detriment and appalling risk management. This bad face of the Celtic Tiger placed intolerable pressures on all and the arrogance and aggression of many senior management figures resulted in efforts to short circuit regulatory requirements. 

Regulation (and compliance professionals) were blamed for blocking progress. ‘Are we over-regulating’ was heard from (now former disgraced or otherwise departed) CEOs and executives, unintentionally supported by understandable media/public enthusiasm – which also undermined compliance.

Positive demand and supply-driven changes arrive. things would get better however.

ACOI's early challenges and achievements

So how do we as the Compliance Institute as an organisation compare ACOI back then?

1.- Membership was broad; in today’s language we had diversity and inclusion of roles, seniority, gender, geography, membership               regionally spread across (urban and rural) industry and sectors, domestic/global. While we did lose regional focus, the Compliance         Institute’s post-Covid-19, CPD events, Conference, prolific bulletins and surveys turned this around in the Zoom/Teams access era,         serving our ever more-sectoral and multi-cultural membership.

2.- We are now broader, but, in terms of senior representation in the Compliance Institute…many Heads of Compliance are now not           even members of the Compliance Institute – shame! Also shouldn’t all Heads of Compliance have ACOI member teams and                       PCC/PDC qualified?

3.- Has engaging actively with the Compliance Institute been negatively impacted by 21st century ‘busyness’/working from home? Are         members more enticed by ACOI’s CV value and qualifications? Hopefully not.

(With 20 times our initial membership we struggle to populate some working groups and committees).

What has changed in the Compliance Officer's World?

A lot. Following the financial crash in 2008 and its aftermath, society outrage demanded a response to address the crash, causes, punish wrongdoers (yes) and avoid a recurrence.

We – with some regulatory pressure - as businesses together began to collaborate with better common purpose and understanding to meet the new regimes, address contractual and legal legacies and develop different business models with the customer and more ethical practices at their centre. Covid-19 responses also reflect this.

It is to the immense credit of those leaders and those in financial services working in ‘the business’, in compliance, risk and control functions, that we have made such progress and developed to where we are today with the compliance community in Ireland that we now have.