Module 3: Risk Oversight And Compliance – Action Plan For Board Of Directors

Scope of Coverage

1. Role of the board of directors in building and sustaining an effective ethics and compliance framework that aims to meet the directors’ fiduciary duties
2. Identifying and understanding the requirements of the relevant regime;
3. Identifying and understanding the current state of systems and processes in the organisation; and
4. 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.
5. 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.
6. 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:

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