Compliance Program

DEFINITION of 'Compliance Program'

The internal programs and policy decisions made by a company in order to meet the standards set by government laws and regulations. A company will often have a compliance team that examines the rules set forth by government bodies like the Securities and Exchange Commission (SEC). The compliance team then creates a compliance program that assures the company is following the rules. The compliance officer is responsible for ensuring the program is effectively implemented throughout the company.

BREAKING DOWN 'Compliance Program'

Compliance programs have grown in importance as the regulations within many industries have increased. Overlapping regulatory agencies, financial reforms and many other factors have made compliance a full-time job for all publicly-traded companies.

RELATED TERMS
  1. Respondeat Superior

    A legal concept in which a company and the company's management ...
  2. Compliance Examination

    A periodic examination of banks to make sure banks are operating ...
  3. Compliance Department

    The department or unit within a brokerage firm, bank or financial ...
  4. Voluntary Compliance

    An assumption or principle that taxpayers will comply with tax ...
  5. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  6. Regulation Fair Disclosure - Reg ...

    A rule passed by the Securities and Exchange Commission in an ...
Related Articles
  1. Professionals

    Common Interview Questions for Compliance Officers

    Prepare to ace your compliance officer interview. Learn how to answer some commonly asked interview questions and what you need to know to come out ahead.
  2. Fundamental Analysis

    How The Sarbanes-Oxley Era Affected IPOs

    After the infamous collapse of companies like Tyco, Enron and WorldCom, the government responded to try and prevent it from happening again.
  3. Professionals

    Get A Job In Compliance

    If you're a stickler for rules, this could be a promising career path for you.
  4. Professionals

    On The Record: Communications With The Public

    NASD Rule 2211 can make or break your career as a registered principal.
  5. Personal Finance

    Understanding The Basel III International Regulations

    The Basel III regulations mark a drastic reform in international banking. But how do they impact the future's investment landscape?
  6. Economics

    The Pitfalls Of Financial Regulation

    Regulatory actions usually have lofty intentions that end up with unintended and negative consequences.
  7. Professionals

    Examining A Career As An Auditor

    Stricter government regulations have put auditing professionals in demand.
  8. Options & Futures

    Financial Regulators: Who They Are And What They Do

    Find out how these government agencies govern the financial markets.
  9. Investing Basics

    Free Cash Flow Yield: A Fundamental Indicator

    Free cash flow can measure a business’s performance as if you’re looking at its net income line.
  10. Personal Finance

    How the Green Card Lottery Really Works

    Here's how the popular green card lottery, run by the U.S. State Department, operates, including some tips on improving your odds of winning.
RELATED FAQS
  1. What's the average salary of a compliance officer?

    The average salary for a compliance officer is $66,770 per year, according to the U.S. Bureau of Labor Statistics. This salary ... Read Full Answer >>
  2. What is the Writ of Mandamus?

    A writ of mandamus is a court order issued by a judge at a petitioner’s request compelling someone to execute a duty he is ... Read Full Answer >>
  3. Are UTMA accounts escheatable?

    Like most financial assets held by institutions such as banks and investment firms, UTMA accounts can be escheated by state ... Read Full Answer >>
  4. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  5. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  6. What is the SEC's escheatment process?

    The U.S. Securities and Exchange Commission (SEC) does not have its own escheatment process. Rather, the SEC notes that the ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center