What type of actions may be taken if compliance is not adhered to?

When compliance regulations are not adhered to, one of the primary actions that can be taken is the imposition of penalties or damages. Regulatory bodies establish strict rules to ensure that financial institutions operate fairly, transparently, and within the law. If an institution fails to meet these compliance requirements, it may face significant consequences, which can include fines, legal penalties, or required restitution for damages caused by non-compliance. These actions are designed not only to punish the non-compliant entity but also to serve as a deterrent to encourage adherence to regulations in the future.

In contrast, options like simplified refund processing, increased fees, or extended filing deadlines do not directly address the issue of compliance failure. Instead, they may relate to operational practices or policy changes which do not fundamentally tackle the compliance risks and responsibilities that organizations must uphold to protect consumers and maintain market integrity.