Essential Strategies for Financial Services Compliance, 2nd Edition

Appendix DCompliance for Senior Management, the Back Office and Other Support Departments

This appendix provides a brief description of some of the Back Office and support departments that are likely to be found in a typical financial institution. It also describes some of the main regulatory requirements that are of relevance to them and summarizes the controls they are responsible for that have an impact on Compliance. Similar guidance is given in relation to senior management and the board of directors.

Department
Senior management and the board of directors	266
Personnel/Human Resources (HR)	269
Marketing	272
Finance	274
Company Secretariat	275
Internal Audit	277
IT	279
Legal	282
Operational Risk	284
Back Office (Operations)	285
Tax	288

Department

Senior management and the board of directors

Typical activities

Senior management are responsible for the corporate governance of the firms in their charge. ‘Corporate governance’ is an expansive concept but it can be summed up as: the direction and management of corporate affairs in order to maximize shareholder (or other relevant stakeholder) value. In most firms is likely to involve the following types of activity: Setting strategies for the firm and reviewing their implementation. Reviewing performance of the firm and its employees. Receiving, reviewing and acting upon management information reports, and assessing whether the content and frequency of these are adequate. Setting remuneration policy ...