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

CPD*

* SIDC CPE points are recognised by FIMM, AICB and MIA

Learning Hours

1.5 hours (including Pre & Post Assessments)

Outline

• Role of the board of directors in building and sustaining an effective ethics and compliance framework that aims to meet the directors’ fiduciary duties
• 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?
  – Best practices in compliance for capital market intermediaries; including monitoring compliance as an important part of directors’ oversight responsibilities;
  – 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 – Compliance functions and activities

Learning Outcomes

By the end of this session, 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
• Discuss how to exercise judgement appropriately in dealing with issues of risk oversight and compliance brought to the board’s attention.

Competencies

Core Risk Management (Proficiency Level 4) Foundational (Regulatory) Capital Market Intermediaries (Proficiency Level 4) Behavioural (Organisational Leadership) Strategic Thinking (Proficiency Level 4)