The purpose of the annual compliance review is to assist a licensee's Board and senior management to assess, amongst other things, whether internal and external reports are being made (as required under Chapter FC-4), and whether the overall number of such reports (which may otherwise appear satisfactory) does not conceal inadequate reporting in a particular segment of the licensee's business (or, where relevant, in particular branches or subsidiaries). Investment firm licensees should use their judgement as to how the reports listed under Paragraph FC-3.3.1B(a) and (b) should be broken down in order to achieve this aim (e.g. by branches, departments, product lines, etc).