HC-9.1.3
The Board, Audit Committee or the designated Board committee and senior management must:
(a) Ensure that, based on an agreed remedial action plan, all compliance findings are resolved within a reasonable period of time to be set based on level and magnitude of risk;
(b) Not restrict the compliance function from reporting any irregularities or breaches that are identified as a result of its work or investigations, and must ensure that such reporting can be done without fear of retaliation or disfavour from management, board members or other staff members;
(c) Ensure that the head of compliance and his staff are not placed in a position where there is a possible conflict of interest between their compliance responsibilities and any other responsibilities they may have;
(d) Not consider the compliance function as a cost center; instead it should be viewed as an activity that helps the licensee avoid enforcement action for non-compliance, enhances the licensee’s reputation and promotes the right environment for better financial performance; and
(e) Ensure the compliance function’s right to:
i. Have unrestricted access to any records or files necessary to carry out its responsibilities, and the corresponding duty of licensee staff to co-operate in supplying this information;
ii. Conduct investigations of possible breaches of the applicable laws, regulations and the compliance policy; and
iii. Appoint, subject to audit committee’s approval, outside experts to perform a specific task, if appropriate.
Added: April 2023