HC-7.1.7
The head of compliance must:
(a) Report to the Audit Committee or the designated Board committee and administratively to the CEO. In the case of overseas investment firm licensees , the reporting must be to the Group or Regional Head of Compliance and administratively to the CEO/GM of the branch;
(b) Establish the operating compliance procedures and processes for identifying, assessing, monitoring, reporting and advising on compliance risk;
(c) Establish written guidance to the licensee’s staff on the appropriate implementation of laws and regulations;
(d) Conduct, under the sponsorship of the CEO, awareness sessions for the licensee’s staff on compliance policy requirements and issues; and
(e) Report to the Audit Committee or the designated Board Committee:
i. On a quarterly basis, the licensee’s management of its compliance risk, in such a manner as to assist committee members to make an informed judgment on whether the licensee is managing its compliance risk effectively; and
ii. Immediately any material compliance failures as they arise (e.g. failures that may attract a significant risk of legal or regulatory sanctions, material financial loss, or loss of reputation).
Added: July 2023