Regulatory compliance in the banking and financial sector: some considerations

The paper sets out to analyse to what extent the duty to establish a compliance function in the organizational structure of an intermediary may have a positive impact on firms’ bargaining processes. The role played by the compliance function in reducing transaction costs, enhancing firms’ reputation and avoiding sanctions are examined. In conclusion, also in light of a number of cases, it becomes clear that the implementation of an effective compliance function may be profitable for intermediaries in the banking and financial sector.