Sign up to save your podcasts
Or
Share Benefits of outsourcing compliance services in the DIFC
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Benefits of outsourcing compliance services in the DIFC
This episode is also available as a blog post: https://10leaves.ae/publications/difc/difc-compliance-services-outsourcing-benefits
What are the benefits of outsourcing the compliance function?
The comparison between in-house and outsourced compliance options follows the same reasoning as for any outsourcing option. Here are some factors that can help you decide.
Cost:
The cost of hiring a full-time compliance officer in the DIFC can be high, especially for startup financial firms. Salaries range upwards of US$ 8,500 per month for a suitably qualified compliance officer, who has been previously licensed by the DFSA. Other direct costs include medical benefits, DEWS (end-of-service) registrations, and visa costs. Also add to that the costs of recruiting and the delay in joining due to notice periods from previous companies. Outsourcing, on the other hand, entails a fixed and lumpsum monthly fee, that is easy to budget for and manage. These costs increase as the firm grows, and at some point it will become more advantageous to hire someone in-house. In our experience, we have seen this to be at least 2-3 years for firms that clock an above-average rate of growth.
Another key factor of consideration is investment in tools that they Compliance Officer requires to discharge his/her duties. Financial services firms must continuously invest in new technologies and infrastructure to address evolving compliance needs. These costs are not borne by the firm in case of outsourcing the function.
Availability of talent:
One of the main reasons for outsourcing the compliance function in the DIFC is a lack of locally available resources. The supply of compliance specialists is small relative to the demand in the market.
Listen to know more!
View all episodes
By 10 LeavesThis episode is also available as a blog post: https://10leaves.ae/publications/difc/difc-compliance-services-outsourcing-benefits
What are the benefits of outsourcing the compliance function?
The comparison between in-house and outsourced compliance options follows the same reasoning as for any outsourcing option. Here are some factors that can help you decide.
Cost:
The cost of hiring a full-time compliance officer in the DIFC can be high, especially for startup financial firms. Salaries range upwards of US$ 8,500 per month for a suitably qualified compliance officer, who has been previously licensed by the DFSA. Other direct costs include medical benefits, DEWS (end-of-service) registrations, and visa costs. Also add to that the costs of recruiting and the delay in joining due to notice periods from previous companies. Outsourcing, on the other hand, entails a fixed and lumpsum monthly fee, that is easy to budget for and manage. These costs increase as the firm grows, and at some point it will become more advantageous to hire someone in-house. In our experience, we have seen this to be at least 2-3 years for firms that clock an above-average rate of growth.
Another key factor of consideration is investment in tools that they Compliance Officer requires to discharge his/her duties. Financial services firms must continuously invest in new technologies and infrastructure to address evolving compliance needs. These costs are not borne by the firm in case of outsourcing the function.
Availability of talent:
One of the main reasons for outsourcing the compliance function in the DIFC is a lack of locally available resources. The supply of compliance specialists is small relative to the demand in the market.
Listen to know more!