Most of the applicable laws and regulations require the regulated entities to ensure that the Compliance Function performs its tasks and responsibilities on a permanent basis. These entities are expected to have a Compliance Function in office at all times. Consequently, the regulated entities shall establish and implement arrangements that consent for the fulfilment of the responsibilities of the Compliance Function when it is absent from office so that all the responsibilities and duties are performed on an ongoing basis.
In discharging its tasks, the Compliance Function may delegate and/or be assisted by other employees falling under its supervision. It is expected that the regulated entities provide their Compliance Function with the necessary human, technological and any other resources that are required to enable the Compliance Function and its staff to carry out their functions in an effective and efficient manner. However, the actions that are to be undertaken by the Compliance Function are not to be construed as meaning that such actions shall necessarily be taken by the Compliance Function itself, as these may be delegated to employees falling under the supervision of the Compliance Function. Nonetheless, the Compliance Function shall remain responsible for the carrying out of the core functions and thus should ensure that it is performing appropriate supervision.
Given the responsibilities that the Compliance Function should fulfil, it is imperative that the Compliance Function is available at all times. However, it is recognised that this is not always possible and that the volume of duties to be carried out may undermine the effectiveness of the role. To this end, it is deemed to be good practice for the regulated entities to consider whether there is the need to appoint a designated employee to assist and, whenever necessary, temporarily replace the Compliance Function when absent. The main purpose of a designated employee is to fill in for the Compliance Function. Thus, based on the size, nature and the complexity of the services offered by the regulated entity, the latter may also consider, on a case-by-case basis, the possibility of appointing more than one designated employee. These employees can assist the with the process of internal reporting, collection of information, liaising with other units or sections with the regulated entities, or may be involved in more onerous obligations, always under the supervision of the Compliance Function.
The arrangements that the regulated entities put in place in order to ensure compliance with the requirement of permanence of the Compliance Function should be adequate and should be described in writing in the Compliance Policy. The Compliance Policy, when setting the responsibilities competences and the authority of the Compliance Function, should also cater for the delegation of tasks related to the monitoring or reporting obligations of the Compliance Function.
The information contained in this write up is provided for general informational purposes only. It does not, and is not intended to, constitute legal advice on any subject matter. You should not act or refrain from acting on the basis of any content included in this write up without seeking legal or other professional advice for your particular situation.