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Today, we are going to talk thoroughly about how the compliance function should be in your company so that it can be ensured that your company faces no risk of being fined due to non-compliance. But before starting, we would like to inform you that choosing Compliance Outsourcing Companies is the best you can do if you want to ensure that you have a robust compliance system in your company.
In compliance with the principle of proportionality, companies should opt for an organizational structure in which the compliance function and the one in charge of handling complaints are separate.
If the compliance function is also involved in handling complaints, the compliance report should examine any issues arising from the implementation of the arrangements aimed at assessing, minimizing, and managing any conflict situations that may arise between the two functions.
In addition, firms should ensure that the compliance function provides advice and daily assistance to management and staff and takes part in the definition of policies and procedures on investment services and activities (for example, policies on product governance and remuneration), as well as all significant organizational changes.
The compliance function should promote and disseminate a “culture of compliance” within the company, supported by senior management, which focuses not only on consumer protection but also on the stability of the financial system.
The companies are required to ensure that their personnel has adequate training. To this end, training is required to be developed on an ongoing basis to be able to consider the changes in the reference legislative and regulatory framework.
The compliance function should monitor, in collaboration with the management team, whether personnel have the necessary technical knowledge and correctly apply company policies and procedures.
Firms should ensure that the compliance function is equipped with human and IT resources appropriate to the size and type of service and investment activities provided to clients. In this regard, senior management has the task of monitoring, at least annually, whether the number and skills of employees “continue to be adequate”.
Where the entity allocates financial allocations for specific functions or units, the compliance function should be allocated funds related to the level of compliance risk to which the entity is exposed.
Compliance personnel should always have access to all relevant databases and records (for example, recordings of telephone conversations), to always be aware of the different risk profiles of non-compliance.
Likewise, the compliance officer should be allowed access to all relevant information systems, as well as internal or external audit reports or other communications intended for senior management or the supervisory function.
Where appropriate, the compliance officer should be able to attend top management meetings or the supervisory function. Failure to grant this right should be documented and justified in writing.
The qualifications, knowledge, and skills that the personnel making up the compliance function must possess to fulfill the obligations established by authorities.
This function must also have the necessary authority, understood as the possession of adequate skills and relevant personal skills (such for example, the ability to judge).
The compliance officer should have sufficient knowledge and experience to be able to take over the business unit, as well as exhibit high standards of professional ethics and personal integrity as well as professional skills and expertise to assess compliance risks and conflicts of interest inherent in the business activity. If your company is lacking in this area, we suggest that you should consult Compliance Outsourcing Companies for this work