CEO Insights Magazine

In any organization, the Head of Compliance serves as a linchpin, tasked with ensuring ad­herence to regulatory frameworks and internal standards essential for maintaining trust and operational integrity. This pivotal role requires not only a keen understanding of global and local compli­ance landscapes but also strong leadership to guide teams through complex regulatory challenges while upholding ethical standards. It's within this context that figures like Mitsuaki Hasegawa, Head of Compli­ance Asia at Man Group, demonstrate their invaluable expertise and leadership. Mitsuaki brings over thirty-five years of experience in the financial industry in Japan. Throughout his career, he has held significant global and regional responsibilities in compliance and other internal control roles, including serving as a statutory auditor. His expertise spans various fi­nancial institutions, from global bulge brackets like Goldman Sachs and Deutsche Bank to leading non-traditional managers such as Man Group and Angelo Gordon.

Hasegawa's tenure includes a notable stint as Global Head of Compliance at Nikko Asset Manage­ment, a prominent Japanese firm. He emphasizes the people-centric nature of compliance, recognizing it as both a business imperative and a vulnerable func­tion susceptible to political pressures. His philosophy stresses the importance of global reporting lines over local ones and underscores the ethical dimension of compliance beyond mere adherence to rules and reg­ulations, particularly highlighting the significance of ethics and morals in the Japanese context.

In his approach to compliance roles, Hasegawa ad­vocates for a commitment to responsibilities rather than blind loyalty to the firm, encouraging compli­ance professionals to leave a positive legacy while maintaining their career integrity. His insights reflect a nuanced understanding of the complexities inher­ent in compliance leadership, shaped by decades of experience in diverse and challenging regulatory en­vironments. Let’s hear from him.

Share with us your expertise in conducting regular risk assessments in light of changes and in understanding various kinds of risks? How do you find these experiences beneficial in providing a strategic direction to the management team on compliance?

Building a trusted partnership with management and maintaining close communication is crucial for staying updated. Regularly reviewing and automat­ing compliance procedures where possible increases efficiency, allowing resources to be focused on more critical areas. Staying informed about global regula­tory trends and paying attention to media reports on misconduct and scandals helps in understanding the broader risk environment.

It's essential to balance necessary actions with those to be avoided, tailoring the approach based on the quality of local management. When management recognizes compliance as an indirect profit center, it indicates a promising partnership. These practices enable strategic direction and support informed de­cision-making.

How do you facilitate an ease in communicating with the leadership board, including regulatory bodies, industry groups or vendors to ensure collaboration in compliance tasks?

Facilitating effective communication with the leader­ship board, regulatory bodies, industry groups, and vendors is crucial for ensuring seamless collaboration in compliance efforts. With management, establish­ing a relationship built on trust and partnership is foundational, fostering open dialogue and mutual un­derstanding of compliance priorities. Transparency and honesty are key when engaging with regulatory bodies, seeking their consultation and advice while sharing pertinent information to ensure compliance alignment. Similarly, maintaining proactive com­munication with industry associations involves the exchange of insights and best practices to enhance industry standards collectively.

When interacting with vendors, prioritizing direct engagement rather than relying solely on compliance consultants is essential. This approach minimizes the risk of inadvertently educating consultants while paying fees, ensuring that compliance efforts are ef­ficiently managed and aligned with organizational goals. By nurturing these communication channels effectively, organizations can navigate compliance challenges collaboratively and uphold robust regula­tory standards across all stakeholders involved.

In managing compliance, how do you cultivate a strong culture of adherence to regulations? What strategies do you employ to ensure ef­fective decision-making that addresses issues promptly and prevents their recurrence?

Building a trusted partnership with the business is foundational, fostering mutual understanding and collaboration. Education and ongoing training are es­sential cornerstones, ensuring that all stakeholders are equipped with the knowledge to uphold compli­ance standards. Utilizing the tone set by senior leadership, when appropriate, reinforces the importance of compliance throughout the organization.

Proactively engaging with the business allows for the identification of issues and concerns early on, facilitating timely and effective resolutions. In the event of an incident, conducting thorough investigations to understand root caus­es and broader contextual factors enables the development of comprehensive improvement plans.

Balancing calculated risks while maintaining alignment with legal and ethical standards is crucial. Relying on experi­ence and a deep understanding of regulatory nuances helps navigate gray areas responsibly, ensuring that business ob­jectives are achieved without compromising integrity. Taking personal accountability for regulatory matters within one's jurisdiction is paramount, reinforcing a commitment to ethi­cal conduct and regulatory compliance across all operations.

Looking ahead, what are your envisioned milestones for your career journey?

I aim to transition to a role as Chief Ethics Officer in the fi­nancial sector, preferably based in London, expanding my expertise beyond Japan. Academically investigating the re­curring misconduct and scandals in the financial services in­dustry globally, despite industry-wide and regulatory efforts, is a key area of interest for me.

How do you lead and motivate your team to embrace continuous improvement in their skills and expertise under your guidance?

I emphasize key values such as integrity, honesty, and high ethical standards, along with diligence, common sense, and respect for others, fostering a strong sense of teamwork. En­couraging each team member to develop a long-term career plan, supported by short to mid-term goals, promotes per­sonal growth and professional development. Emphasizing a culture of continuous learning and intellectual curiosity nur­tures an apprenticeship mindset, where team members are encouraged to invest in themselves and institutionalize team knowledge for sustained success.

Mitsuaki Hasegawa, Head - Compliance, Asia Man Group

Mitsuaki Hasegawa, Head of Compliance Asia at Man Group, brings over 35 years of financial industry experience in Japan, with global roles at institutions like Goldman Sachs and Nikko Asset Management. He emphasizes ethics in compliance, advocating for global reporting lines and strategic management of compliance risks.