The importance of mandatory training in the financial sector: from compliance in a strict sense to continuing professional development
Written by Martin Haegheman | Febelfin Academy, Betty Dupont | Crelan, 22/01/2025 • Compliance & Audit
Lifelong learning is almost self-evident in finance, not only because of the dynamic nature of the sector, but also because the regulator has to strictly monitor the rules imposed at various levels. Within the wide range of training courses, compliance training plays a special role.
Compliance training is essential to meet legal requirements and keep the organisation compliant. In addition, it enhances the expertise of Compliance Officers and their teams, who play a key role in complying with complex regulations.
Mandatory training for all employees: the role of compliance
There are many regulations, both at European and national level, that define the criteria that financial institutions' services and products must meet. These strict rules reflect the important social role of the financial sector, where reliability, transparency and legal certainty are crucial. Nothing is left to chance, obviously. It is the responsibility of organisations to ensure their employees have both the right capabilities and knowledge, as well as meeting all legally defined criteria, by training them appropriately. Just think of e.g. MiFID, AML , the DORA Directive and the AI Act.
Compliance Officers ensure that all required training is included in a training plan that is rolled out across the organisation . They monitor the progress and ensure that the organisation avoids conflict with regulations, which could lead to heavy fines or reputational damage.
Betty Dupont: Through a compliance risk assessment, we identify the relevant risks employees face. Based on this, we advise the training manager on the domain, e.g. MiFID or AML, the distribution within the organisation and the form in which we need to offer the training(s).
‘The aim is to enable employees to perform their daily tasks correctly and safely, while also meeting the legal requirements associated with their role.’
Martin Haegheman: Within compliance, the E-learning can be a particularly useful learning format to share basic knowledge, which is mandatory for many employees, quickly, efficiently and traceably within one's organisation. Moreover, they are the start for knowledge deepening depending on the target group and their needs. For example, Febelfin Academy developed E-learnings on ESG, the banking oath, conflicts of interest and AI literacy. These E-learnings can also be tailored to the specific needs of a particular organisation.
Continuing professional development for compliance officers: specialised expertise
Besides focusing on general training for the organisation's employees, the continuing professional development of Compliance Officers and their teams is also an important focus. For their crucial task, the regulator requires them to have the mandatory knowledge and experience, to obtain certain certifications as well as to continue training themselves. For an overview of the CPD obligations in compliance, please refer to our website.
Martin Haegheman: ‘Typical’ compliance CPD training courses are designed around a particular legislation or regulation. They aim to better understand the meaning and scope of the rules, identify the stakeholders involved and apply the rules in real life within the organisation.
Betty Dupont: The role of the compliance department within the organisation is often very broad. Compliance staff must therefore be a bit ‘’jack of all trades‘’ and have a broad general knowledge of e.g. financial products and the supervisory framework, but also of new developments in e.g. payments or fintech.
Apart from that, soft skills are increasingly important within compliance. It is one thing to know the compliance regulations and to be able to apply them correctly, but it is another to communicate them in the best way to the parties concerned in such a way that they are effectively complied with.
‘Compliance teams need to stay up to date with regulations, but more than ever, they also need good soft skills and a thorough understanding of products, services and new developments to effectively address the risks and challenges faced by the organisation.’’
Martin Haegheman: Within Febelfin Academy's training offer, we link skills to financial technical knowledge as much as we can, such as incorporating communication skills in the ‘Qualified Operational Compliance Professional’ course. This ensures greater efficiency and a positive perception of compliance.
A combination of obligation and development
Although mandatory training courses are imposed from a compliance perspective, they also offer valuable opportunities to organisations and their employees. They increase employees‘ expertise, introduce them to fields other than the one in which they are working and strengthen customers’ and regulators' trust in the organisation. Combining mandatory training with a focus on development creates a culture of knowledge sharing and quality improvement within the bank.
'Following the right training courses is not just an obligation, it can also be an opportunity to grow as a professional and contribute to a future-proof organisation. Compliance can play a major role in this.'
For more information about compliance training, please contact Martin Haegheman. Our BD-team can advise you on incompany training options.
