Compliance hierarchy
The order of authority a regulated organisation sits within: legislatures at the top, regulators and supervisors below them, then standards, professional and accreditation bodies.
Overview
Every regulated organisation exists within a hierarchy of authority. Governments and legislative bodies create laws. Below them, regulatory agencies carry out rulemaking, supervision, examinations, licensing, investigations and enforcement under powers those laws grant.
Below the agencies sit guidance-producing organisations, standards bodies, self-regulatory organisations, accreditation institutions and professional licensing authorities. Their outputs are not always law, but they frequently determine what compliance looks like in practice.
The practical result is that obligations arrive from several levels at once, and each level can create requirements the others do not mention.
It connects most directly to Regulatory ecosystem, Legislative authority, Regulatory agency and The five layers of obligation.
Example
A bank’s capital requirement starts in statute, is detailed in regulation, explained in supervisory guidance, tested against an examination manual and benchmarked to Basel standards.
Check the official sources below for legal scope, applicable dates and exceptions. This entry is an explanatory reference, not legal advice.
Why it matters
Knowing where an obligation sits in the hierarchy tells you how binding it is, who can enforce it, and how likely it is to change.
Who it affects
Compliance, legal, risk and audit teams deciding which requirements to prioritise and how to evidence them.
Where it sits
Ten linked steps connect where you operate to the proof that you complied.
- 01Jurisdiction
- 02Industry
- 03Activity
- 04Authority
- 05Regulation
- 06Requirement
- 07Guidance
- 08Control
- 09Evidence
- 10Enforcement
Connections
The terms most closely tied to Compliance hierarchy. Select one to open it.
What to do about it
- 1Map where your obligations come from.
- 2Link each one to the controls and evidence behind it.
- 3Review the map whenever the business or the rules change.
From requirement to evidence.
Every obligation in Regulation Layer carries its issuing authority and authority type, so you can filter the dial by how binding an obligation is and who stands behind it.
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