HC-7.1.5
In groups (applicable to Category 1 investment firms):
(a) The audit committee and senior management, with assistance of the group head of compliance, should ensure that adequate resources, commensurate with the scale and complexity of operations, are assigned for compliance activities at the head office, subsidiaries and overseas branches; and
(b) The group head of compliance should ensure that:
i. Adequate reports and information are received from subsidiaries and overseas branches on compliance related issues and must report the same to the audit committee; and
ii. It conducts annual compliance testing on subsidiaries and overseas branches whose total revenue represents 20% or more of the group’s total revenue and every two years for other overseas operations.
Added: July 2023