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(USGovernment-News.Com, August 17, 2015 ) Johannesburg -- According to the information officer of the Compliance Institution of Southern Africa, a regulatory compliance body is important because it makes sure that rules are adhered to either by law, standard or policy set.
He comments, "There are many regulations that organisations must adopt and follow hence compliance controls are necessary. Every organisation should have a regulatory compliance function and must by all means do everything to aspire to achieve law awareness as well as compliance Hence the role of a compliance officer is significant."
He adds, "Many organisations have compliance officers who give recommendations and guidance on regulatory responsibilities aspects. Compliance officers are an extension of monitoring structures. Although the ultimate tasks of understanding, overseeing the management of compliance standards according to rules, laws, codes and standards rests on the board and management.
The compliance officer mainly assists in discharging responsibilities, facilitating establishment, development and an efficient compliance risk management process." He comments, "Risks that organisations can face include market risk, operational risk, credit risk as well as compliance risk that comprises of reputational and regulatory risk.
A regulatory risk means that a business is not complying with regulatory requirements. It excludes provisions of relevant regulatory requirements from its operational procedures. A business that is exposed to negative comments and opinions to the contravention of applicable regulatory requirements will suffer from a reputational risk.
Negative publicity, public sanction by regulators or by simply word of mouth by competitors customers, stakeholders can result in a reputational risk. Originally the Compliance Institute originated from the financial services industry. The finance industry has regulated requirements for the establishment of an independent compliance function and the appointment of a compliance officer. However, more industries are now appointing compliance officers."
He mentioned that maturity of the compliance, as increased as more financial service providers, are increasingly relying on compliance officers. He further explained the requirement that are needed for one to become a compliance, officer. "Before the introduction of Regulation 47 now (Reg 49) of the Banks Act, compliance was often thought to be the responsibility of the company secretary.
For one to be a compliance officer it is vital have an accounting or legal degree. However, with the introduction of the Compliance Institute Higher Diploma in Compliance, it's obvious that the Diploma is also going to be an additional requirement."
He also mentioned it important for a compliance officer to understand the business that he/she is working with, as well as the fact that experience is crucial and highly recommended before one embarks on a career as a compliance officer.
He also revealed the participating industries, " Accounting and auditing, Asset management, attorneys, the banking sector, cellular services providers, financial markets, gambling sector, government departments, insurance, medical aids, ombudsman municipalities parastatals, pension funds, regulators retail and the treasury.
It is vital to make sure that monitoring the effectiveness of the compliance function is properly done. " For more information visit http://www.compliancesa.com/
About Compliance Institute of Southern Africa: The Compliance Institute Southern Africa is a Non-Profit Company with a vision to be independent, a professional body for all compliance professionals. Its main objectives are to establish, maintain and promote standards for compliance functions and compliance officers. The strategic direction of the Institute is the responsibility of the Body. The daily management rests with the Chief Executive Officer, supported by the Executive Committee.
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