Capital Market Director Programme

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Module 3: Risk Oversight and Compliance - Action Plan for Board of Directors

Scope of Coverage

  • Role of the board of directors in building and sustaining an effective ethics and compliance framework that aims to meet the directors’ fiduciary duties
  • Identifying and understanding the requirements of the relevant regime;
  • Identifying and understanding the current state of systems and processes in the organisation; and
  • Undertaking detailed impact assessment and gap analysis so as to determine what needs to be done to comply with the requirements of the relevant regime.
  • The board’s role in managing conflicts of interest situations, including
    • Connected/Related party transaction;
    • Insider information;
    • Liquidity and risk management; and
    • Customer complaints and dispute resolution.
  • What happens when there is compliance failure? How to prevent compliance failure?
    • Board’s rights and obligations to demand the right information;
    • Relationship between compliance and internal audit function and the impact on board’s functions; and
    • Case studies of compliance functions and activities.
    • Best practices in compliance for capital market intermediaries; including monitoring compliance as an important part of directors’ oversight responsibilities;

Learning Outcomes

At the end of the programme, participants will be able to:

  • Review a framework that identifies, assesses and manages key strategic and operational risks associated with the conduct of licensed intermediaries;
  • Explain the importance of risk oversight, ethical and compliance programmes and the consequences of failures in such programmes; and
  • Exercise judgement appropriately in dealing with issues of risk oversight and compliance brought to the attention of the board.