The compliance officer

The compliance officer

Compliance officers are responsible for the implementation of the compliance strategies, policies, procedures, processes, and the related reporting.

They ensure compliance with all applicable laws and regulations.

They also ensure that all employees are informed of their obligations, they are motivated to comply, and that controls are established and maintained.

According to the Basel framework, the core tasks of the compliance function defined in laws, regulations, or binding guidance in respondent jurisdictions, are monitoring and testing compliance, and reporting on a regular basis to senior management.

Many jurisdictions explicitly prohibit remuneration of the compliance function staff to be based on the financial performance of the business lines for which they exercise compliance responsibilities.

The Basel Committee has disclosed that authorities underlined two major issues they had to face when implementing a compliance framework.

One of these issues, which relates to small and medium-sized institutions in particular, was how banks should organise their compliance function.

This includes, for instance, the determination of what are appropriate resources for the compliance function in relation to the size, complexity, and nature of the business; the relationship between internal audit and compliance; the independence of the compliance function.

Another issue frequently mentioned by authorities was the scope of compliance risks (eg whether the definition covered non-financial rules and regulations).

The most frequent areas involved in compliance incidents are market conduct (including conflicts of interests, treating customers fairly and ensuring the suitability of customer advice), as well as prudential laws and regulations.

The prevention of money laundering and terrorist financing was also frequently mentioned. Compliance incidents related to accounting and auditing were noted by jurisdictions.

Basel III, the Compliance Function

The bank’s board of directors is responsible for overseeing the management of the bank’s compliance risk.

The board should approve the bank’s compliance approach and policies, including the establishment of a permanent compliance function.

An independent compliance function is a key component of the bank’s second line of defence.

This function is responsible, among other things, for promoting and monitoring that the bank operates with integrity and in compliance with applicable, laws, regulations, and internal policies.

Compliance starts at the top. It will be most effective in a corporate culture that emphasises standards of honesty and integrity and in which the board of directors and senior management lead by example.

It concerns everyone within the bank and should be viewed as an integral part of the bank’s business activities.

A bank should hold itself to high standards when carrying out its business, and should at all times strive to observe the spirit, as well as the letter of the law.

Failure to consider the impact of its actions on its shareholders, customers, employees, and the markets, may result in significant adverse publicity and reputational damage, even if no law has been broken.

The bank’s senior management is responsible for establishing a written compliance approach and policies, that contain the basic principles to be followed, and explain the main processes by which compliance risks are to be identified and managed through all levels of the organisation.

Clarity and transparency may be promoted by making a distinction between general standards for all staff members, and rules that only apply to specific groups of staff.

While the board and management are accountable for the bank’s compliance, the compliance function has an important role in supporting corporate values, policies, and processes, that help ensure that the bank acts responsibly and observes all obligations applicable to it.

The compliance function should advise the board and senior management on compliance laws, rules, and standards, including keeping them informed of developments in the area.

It should also help educate staff about compliance issues, act as a contact point within the bank for compliance queries from staff members, and provide guidance to staff on the appropriate implementation of compliance laws, rules, and standards in the form of policies and procedures and other documents such as compliance manuals, internal codes of conduct and practice guidelines.

The compliance function is independent from management, and provides separate reporting to the board on the bank’s efforts in the above areas and on how the bank is managing its compliance risk.

To be effective, the compliance function must have sufficient authority, stature, independence, resources, and access to the board. Management should respect the independent duties of the compliance function, and not interfere with them.

The areas of special focus by the compliance function include those that could create reputational risk for the bank, including bribery, money laundering, country sanctions, fair treatment of the consumer and practices raising ethical issues.

Responsibilities of the compliance officer (example, job description)

Responsibilities

- Support the Global Chief Compliance Officer (CCO) on compliance strategic initiatives and all compliance matters related to the firms affiliates and advisors, to ensure that the firm is in compliance with all laws and regulations, and all compliance matters are adequately escalated and resolved.

- Develop and execute a compliance program with appropriate controls, to ensure effective compliance oversight of activities.

- Develop compliance/risk manual and other required procedures with suitable application of rules and regulations.

- Implement monitoring controls and processes to oversee application of rules and procedures.

- Ensure compliance as related to insurance company investment programs including intercompany transaction controls and investment procedures.

- Responsible for monitoring compliance with all laws and regulations for designated area of direct responsibility, including business line monitoring and due diligence.

- Monitor and understand calculations and assumptions as required.

- Generate ideas to enhance the compliance program enterprise-wide, focus on risk-based approach to compliance monitoring, eliminate duplications and inefficiencies, increase effectiveness to ensure that highest risks are properly identified and mitigated.

- Drafting and updating compliance policies and testing procedures, liaising with business partners as well as legal and outside consultants to identify and mitigate compliance risks, and analyzing the effect of new business initiatives and products on the compliance program.

- Prepare regulatory filings as needed.

Other responsibilities will include:

- Assisting in preparing for and responding to inquiries and audits from regulatory authorities, and assisting in the development of regulatory reporting and regulatory filings.

- Develop and execute compliance program around privacy and data protection, as legislation and regulation are adopted that affect firm in coordination with global compliance mandate.

- Work in coordination with Chief Information Officer and Chief Information Security Officer to mature firms practices around privacy and security and appropriate policies and response plans.

- Monitor industry-wide compliance initiatives, as well as important federal, state, and non-U.S. regulatory developments and conduct analyses as to how such developments impact our activities.

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Case Study 1: Compliance Officer, Swiss Re, New York.

Swiss Re is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. We anticipate and manage a wide variety of risks, from natural catastrophes and climate change to cybercrime. Combining experience with creative thinking and cutting-edge expertise, we create new opportunities and solutions for our clients. This is possible thanks to the collaboration of more than 14,000 employees across the world.

Our success depends on our ability to build an inclusive culture encouraging fresh perspectives and innovative thinking. We embrace a workplace where everyone has equal opportunities to thrive and develop professionally regardless of their age, gender, race, ethnicity, gender identity and/or expression, sexual orientation, physical or mental ability, skillset, thought or other characteristics. In our inclusive and flexible environment everyone can bring their authentic selves to work.

About The Role.

Our team is looking for a motivated and eager Compliance Officer to support Alternative Capital Partners. Our Alternative Capital Partners group combines the resources and capabilities of the Swiss Re Capital Markets ILS team and the Retro & Syndication team into a unified center of expertise that seamlessly offers our clients comprehensive alternative capital solutions tailored to their unique risk hedging and financing needs.

You will have a primary focus as the compliance officer to an SEC registered investment adviser supporting its compliance program. The role will be integral to building and maintaining an effective compliance risk control environment that enables Alternative Capital Partners' activities.

Core Responsibilities.

- Provide guidance and technical expertise that supports the design, implementation and oversight of the Compliance Program established to support a registered investment adviser.

- Monitor and act upon regulatory developments relating to Compliance Risks and the associated regulatory obligations, including relevant U.S. Securities & Exchange Commission regulations such as the Investment Advisers Act of 1940.

- Support the assessment and completion of regulatory filings associated with Alternative Capital Partners business activity.

- Identify Compliance Risk exposure that might impact Alternative Capital Partners businesses and coordinate accordingly with the relevant Compliance Officers or team.

- Perform Compliance Risk assessments and reporting to Senior Management and legal entity governance.

- Train employees on Compliance Risk topics and internal processes and controls, including applicable regulation.

- Build and maintain cross-functional relationships with other Compliance team members & teams.

- Support for the Coordinated Assurance Framework working with Group Internal Audit and Risk Management.

Case Study 2: Compliance Officer, CLSA, Pune, Maharashtra, India

CLSA is an Asia’s leading capital markets and investment group, connecting global investors to insights, liquidity and capital to drive their investment strategies.

The Compliance Officer will be part of the Legal and Compliance team, reporting into the Compliance Team Head in Pune. As part of this role, you will be responsible for completing compliance assignments in areas such as trade surveillance, regulatory reporting, AML, employee trading or any other tasks assigned to you. You will interact extensively with your regional Legal and Compliance counterparts in Asia and with the Legal/Compliance team in Pune.

Job Responsibilities:

- Review of Complisci staff trading communication items, reconciliation of staff statements against Complysci trade requests.

- Review of staff trades against research report (Restricted List).

- CPT training recording/monitoring.

- Performing speaker, vendor and staff verification checks with external data sources and Screening tools to ensure that all there are no negative news. Drafting and obtaining approvals for Politically Exposed Persons and special cases deviating from the CLSA Group AML and CFT Policy when necessary.

- Regulatory reporting.

- Daily analysis and Investigation of alerts generated by an Automated Trade Surveillance solution across Equities and Fixed Income covering Market abuse and Insider dealing behaviors for allocated jurisdictions.

- Liaise with different Regional compliance officers, the business, Operations or Technology in the development, review, testing and/or enhancement of procedures.

- Performing Sponsor independence checks.

- Performing various tasks regarding Data Leakage Procedure.

- Performing Short Position Reporting.

- Good knowledge of Markets (Secondary and Primary), Derivatives Money Market Instrument.

- Knowledge on Market Manipulation.

- Good Knowledge of Excel.

- Readiness to work on new projects coming from different stakeholders.

Case Study 3: Compliance Officer, MLRO UK, Kraken Digital Asset Exchange, London, England.

As one of the largest and most trusted digital asset platforms globally, we are empowering people to experience the life-changing potential of crypto. Trusted by over 8 million consumer and pro traders, institutions, and authorities worldwide - our unique combination of products, services, and global expertise is helping tip the scales towards mass crypto adoption. But we’re only just getting started. We want to be pioneers in crypto and add value to the everyday lives of billions. Now is not the time to sit on the sidelines. Join us to bring crypto to the world.

This role is based in London. As the designated Compliance Officer, you will have responsibility for the regulatory compliance of Kraken with all applicable requirements under UK law. You will serve a lead role in a cross-functional team that ensures Kraken remains at all times in good regulatory standing in the UK. The ideal candidate should have experience working in a fintech or exchange trading environment, with a deep understanding of requirements applicable to Kraken’s activity under the Payment Services Regulations, Electronic Money Regulations, and AML/CTF regulations relevant to crypto asset activities in the UK.

Job Responsibilities:

- Act as a day-to-day contact for regulatory compliance matters for relevant UK operations.

- Be responsible for the ongoing compliance of the firm with all applicable regulatory requirements.

- Work closely with Kraken’s UK Executive Leadership to ensure operational compliance requirements across the region are implemented.

- Provide compliance expertise to Kraken’s UK Executive Leadership in relation to operational risks (including technology security risk, operational resilience and business continuity), conduct risks and prudential risks in order to build an effective compliance risk monitoring programme.

- Monitor internal and external business, regulatory and technology environments to identify new or emerging compliance risks and verify remediation of issues as applicable.

- Be responsible for the submission or, in some instances, the oversight of any relevant compliance regulatory reports, STRs/SARs, and other filings to be submitted to relevant regulatory authorities.

- Develop and oversee the Compliance Monitoring Programme, and maintain compliance policies and procedures.

- Assess and oversee the implementation of new regulatory compliance requirements as they arise, assist with regulatory horizon scanning, and advise executive management accordingly.

- Coordinate and liaise with Kraken Global Compliance to ensure alignment between global, regional and local compliance policies, procedures, and operations.

- Support regional product development by advising on the compliance impact and requirements associated with localised product launches.

- Support regional marketing and brand development efforts by advising on the compliance impact and requirements associated with business and brand development, and advertising under applicable UK regulations.

- Build and manage a local compliance operations function as required to support operations under future regulatory registrations or licenses.

Case Study 4: Senior Compliance Officer, Vice President, BlackRock, Tokyo, Japan.

Position Description.

- As a member of the Compliance Department of BlackRock Japan this role will be a significant contributor to the Compliance Team, which is responsible for all compliance matters in the Japan business of BlackRock.

- This is a Senior Compliance officer role and will report to the Head of Compliance, Japan.

- Support the development and maintenance of a strong compliance culture and assist the business in maintaining sound compliance processes and systems.

- Work within the Compliance team, assisting to undertake complex compliance activities and the oversight and administration of compliance policies and procedures.

Job Responsibilities:

- Provide compliance advisory service and guidance to the Japan business with a focus on one or more of the following areas of coverage.

- Investment Trust, Investment Management, Investment Advisory, ETFs, Alternatives (Real Estate, Infrastructure), Investment Strategies, Marketing Activities, Regulatory Risk and Review, Privacy, Financial Crime, etc.

- Provide compliance advisory service and guidance to the Japan business in the area of coverage.

- Design and conduct risk-based compliance monitoring and control on activities in the area of coverage and improve the compliance monitoring steps as appropriate.

- Actively participate and provide advice to the Japan business and assigned projects.

- Participate in global and/or regional compliance initiatives and projects as vital and work with the compliance colleagues from other BlackRock offices to ensure global best practice and consistency wherever possible.

- Liaise with local regulators and handle all relevant regulatory enquiries relating to the area of coverage.

- Lead the implementation of new laws and regulatory requirements relating to the area of coverage and perform assessment of the implications.

- Proactively identify current regulatory gaps/ compliance weaknesses and propose rectification measures.

- To provide compliance training to BLK employees in the area of coverage.

- Liaise with other departments, including internal audit and, whenever necessary, external auditors to ensure compliance in all aspects in the area of coverage.

- Reports to Regional and Group Compliance function as required.

- Responsible for reviewing sales and marketing materials, and product documents produced by the area of coverage to ensure that all these documents follow the applicable regulatory requirements and internal standards.

Case Study 5: Studio Compliance Officer, Evolution, Philadelphia, PA.

The Compliance Officer will be responsible for overseeing operational and studio compliance for Pensylvania . This role will work cross-functionally and under guidance from internal audit management to audit the internal control system according to the audit plan.

Essential Job Function & Responsibilities.

- Adaptable and agile, can work in a fast-paced environment and respond and re-prioritize quickly when internal or external changes demand.

- Examines policies, procedures, and practices to ensure compliance with laws and regulations.

- Coordinates with operating departments to ensure adherence to laws and regulations relating to new or revised internal gaming controls.

- Consults with and advises operating units and management affected by compliance issues and regulatory requirements.

- Responsible for addressing day-to-day compliance inquiries or issues; internal memoranda and correspondence; and any other policies or programs published by the company that are of a compliance nature.

- Maintain a clear understanding of Internal Controls.

- Responsible for addressing day-to-day inquiries or issues regarding internal controls.

- Responsible for submissions to the PCGB to obtain approvals for table games additions, deletions and/or moves and any other approvals required by (regulator).

- Perform independent compliance audits to determine if the company is in adherence to gaming regulations and the approved system of internal controls.

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You may also visit:

The Role of the Risk Officer: https://www.risk-officer.com/Role_Of_Risk_Officer.html

Credit Risk: https://www.risk-officer.com/Credit_Risk.htm

Market Risk: https://www.risk-officer.com/Market_Risk.htm

Operational Risk: https://www.risk-officer.com/Operational_Risk.htm

Systemic Risk: https://www.risk-officer.com/Systemic_Risk.htm

Political Risk: https://www.risk-officer.com/Political_Risk.htm

Strategic Risk: https://www.risk-officer.com/Strategic_Risk.htm

Conduct Risk: https://www.risk-officer.com/Conduct_Risk.htm

Reputation Risk: https://www.risk-officer.com/Reputation_Risk.htm

Liquidity Risk: https://www.risk-officer.com/Liquidity_Risk.htm

Cyber Risk: https://www.risk-officer.com/Cyber_Risk.htm

Climate Risk: https://www.risk-officer.com/Climate_Risk.htm

Emerging Risk: https://www.risk-officer.com/Emerging_Risk.htm

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