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Article: What is the Next Logical Step for Improving the Compliance Risk Management and Operational Function?

  • Posted by CTB
  • On September 21, 2021
  • 0

The recent annual conference hosted by the Compliance Institute of SA, once again confirmed to us that digitisation and the harnessing of technology is the logic next step in enhancing the compliance risk management function, in a host of ways.

The Compliance Toolbox has more than a decade of experience in managing the development of a compliance management software system for the independent financial services market.  Our strong focus on enabling providers to demonstrate the performance of their ongoing compliance activities, has been adding value across the board. Especially those FSPs that have experienced virtual visits and inspections by the regulator, were greatly empowered by being able to articulate as well as demonstrate their compliance and risk management activities in the most professional manner.

The software system covers extensive regulatory risk assessments with over 1,500 risk factors across multiple topical assessments and growing steadily, providing a useful heat map of the inherent- and residual risk pertaining to each risk factor.

The software system boasts a Task or To-do functionality, which is used to set up weekly, monthly, quarterly, bi-annual and annual Tasks to be performed by various role players within the internal compliance function of an FSP to ensure accountability for each and every activity that is required to be performed or conducted on an ongoing basis. Once a repeat task is concluded successfully, it is marked off by the responsible person, and automatically reverts to the next period, depending on the frequency selected.

Turning to financial services industry specific functionality, this software system facilitates a the comprehensive housing of the competence credentials of each key individual and representative, including the recording of Product Specific Training, Class of Business training, Regulator Exams, Skills programs and full Qualifications. This is a simple and easy way to record Continuous Professional Development (CPD) hours. It even contains a Supervision Activities register where supervised representatives can record their activities. Individual profiles also allow for uploading of all statutory documentation, such as a person’s Letter of Authority, Disclosure document, signed Honesty, Integrity & Good Standing declarations and more.

A host of statutory registers, available on the software system, promise to make life so much easier. Just to comment on one register namely, the Complaints register; it is designed to comply with the latest amendments to the General Code of Conduct, requiring categorisation of complaints, the status of complaints, record keeping of the details of the complainant, all correspondence and communication, a separate section to record investigation and review information and lastly the recording of the final outcome, which will provide a detailed report of reportable complaints, when required by the Authority.

Other registers include Advertisement & Marketing, CMS Accreditations, Conflicts of Interest, Early terminations, Gifts, Foreign or local Regulators, Mandates, Scripts, Production, Product Suppliers, Service providers and more.

For leaders who are conscientious in their approach and seek to be empowered to exercise effective control over their internal compliance function, this system guarantees placing them in a position where they will be able to demonstrate efficient and effective execution of their continuous compliance activities.

Digital revolution is real and companies therefore need partners that have pioneered the technological stage and who are well positioned to help navigate the future, through practical and flexible digital management solutions.

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