Elements of a Successful Compliance CommitteeJul 13, 2023
In the ever changing regulatory environment, maintaining compliance is essential for the success of any AFSL. While not a legal or regulatory requirement, Compliance Committee Meetings can play a crucial role in ensuring that the licence adheres to its s912A General Obligations. They also ensure that the committee members are informed of the day to day operation of the business and also keeps them up to date with the latest industry and reg updates.
The Compliance Committee forms an integral part of an AFSL’s compliance framework, but what makes an effective compliance committee?
Running an effective Compliance Committee meeting requires planning, organisation and engagement from all members. The process starts with a thorough and structured agenda.
The purpose of the meeting should be focused on the General Obligations of the licensee and may include, but is not limited to, the review of compliance reports, internal policies, incidents and breaches, and complaints.
To maximise the success of the compliance committee, consider including the following types of stakeholders:
- Executive team - including the CEO or COO.
- Responsible Managers – RMs should have day to day oversight of the operations of the AFSL.
- Compliance Managers – who undertake the day to day compliance operations of the AFSL.
- Heads of Department – to ensure representation from diverse aspects of the business.
- External Compliance Consultants – to offer an external set of eyes, a second opinion and insights from industry.
To run a successful committee, consider the following key elements:
- Regular meetings: To ensure consistency and to stay informed of the operations of the business, we recommend CCMs are held quarterly. In 3Lines, we update the CCM agenda each calendar quarter with industry and regulatory updates, so licensees can stay up to date.
- Set agendas: Well structured agendas ensure the meeting runs efficiently and also ensure a robust discussion takes place and nothing is left off the table. 3Lines allows AFSLs to run their meetings and take minutes in real time, to ease the administrative burden.
- Oversight of action items: Track open action items and ensure the owner of each action is accountable and completing actions that are allocated to them. Again, 3Lines provides oversight of all action items, enabling easy follow-up and continual progress.
- Maintaining expertise: Ensure that committee members receive appropriate training so they can stay up to date of the ever changing regulatory landscape. 3Lines’ RM Bootcamp provides self-paced online training for RMs and anyone with an interest in compliance.
- Risk assessment: Establishing a robust risk assessment process will allow the AFSL to continuously monitor risk levels. Continuous improvement – by establishing a regular and robust CCM process, the licensee will foster a culture of continuous improvement and ensure its compliance framework is well equipped to manage emerging risks, industry and regulatory updates.
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