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.

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 ...

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