07 Jul 2020 Ankit Chadha

How TRC Helps You With Financial Service Compliance

Traditionally, the board of directors (BoD) and key managerial personnel (KMP) perceived their focus mainly on creating value for shareholders. However, with today’s multi-layered regulatory landscape, complicated business structures and shifting technological advancements, organizations are directed by law to prioritize accountability and governance. Massive financial frauds and scams in the last decade have forced the statutory authorities to necessitate streamlined compliance management processes and also build essential control measures to mitigate any risks. 

With the initiation of the Companies Act, 2013 and the SEBI Listing Regulations, the importance of a robust compliance framework has been accentuated to re-emphasize and also re-establish increased obligation on BoD’s and KMP’s. This helps the management in developing an appropriate business system that ensures compliance with all applicable laws. Some of the main challenges and problem statements that your business can face are: 

  1. Numerous Legislations and Regulators  

  1. Following and Tracing Regulatory Changes 

  1. Sensitive Underlying Controls (Policies Or SOP) 

  1. Disintegrated and Ineffective Reporting 

  1. Absence of Data Centralization Processes 

  1. Ineffectual Segregation of Roles, Positions and Duties 

  1. Heightened Risk of Non-Compliances 

  1. Scrutinizing of Compliance Due-Dates 

How can TRC Help With Financial Service Compliance and Assurance? 

At TRC Corporate Consulting, we offer you compliance and assurance services to develop an inclusive, comprehensive compliance risk assessment plan for all aspects of your business, including financial compliance. Our team of experts deliver the right information and assistance to enable higher compliance throughout the organization. Take a look at some of TRC’s critical components of financial service compliance framework: 

Component 1: Compliance Policy 

Actions: Precise documentation of all compliance standards within the responsibility matrix developed across all products and functions of the business. 

Component 2: Compliance Association Structure 

Actions: Support preparation of performance and reporting matrix that reflects organization structure in association with compliance regulation. The associated organizational structure for compliance would be as follows: 

  • Centralized compliance functions that are backed by region centred compliance teams 

  • Centralized compliance functions that are backed by product-oriented compliance teams 

Component 3: Connections to Key Committees 

Actions: Provide assistance to frame and outline terms of reference for Board and Operational Level Committees highlighting the requirement of governance, accountability, and responsibility. 

Component 4: Financial Service Compliance Policy and Charters 

Actions: Devise charters and policies comprising financial service compliance risk, roles, responsibilities and enable assistance to build strategies for instituting “zero tolerance” culture for non-compliant practices. 

Component 5: Compliance Obligation Registers and Records 

Actions:?Deliberate mechanisms for timely registering and recording all compliance obligations, including:  

  • Identification and documentation of non-core (general) and core (product) level compliance obligations 

  • Preparation of compliance obligation registers and records, including financial service compliance reports as well. 

Component 6: Compliance Assessment Framework 

Actions: Develop and implement a suitable compliance assessment framework based on: 

  • Risk oriented compliance testing that is benchmarked with the best industry practices 

  • Promptly and accurately reporting gaps and proposing appropriate remediations 

 

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