[19] Risk-based approach because, as mentioned above, the compliance officer`s action strategy, in line with the questions addressed to the compliance function, consists precisely of working in an innovative way to predict and anticipate events that could modify business processes and therefore cause harm to the company. D. ALUNNI, The Compliance Function and supervisory body of banking institutions, in Iusinitinere.it. Since an organization based on the separation of the different control functions seems preferable, the combination of the compliance function with that of internal control may be allowed, provided that the effectiveness and independence of the control function are not compromised. Any pooling of those functions should be documented and justified in order to enable competent authorities to assess their adequacy. [22] See M. BALDUCCI, But what is this compliance?, on risk & Compliance Platform Europe, 15 January 2020, available at: www.riskcompliance.it/news/ma-cosa-e-questa-compliance/. The realignment reaffirms the principle that the compliance function must promote and disseminate a “culture of compliance” supported by the company`s senior management, with a focus not only on consumer protection, but also on the stability of the financial system. In addition, the compliance function should regularly monitor all sectors and/or operating areas that are most exposed to compliance risks in order to prevent their occurrence or, if not, to react quickly to unforeseen events.
Companies are required to ensure the continuity of the compliance function through internal procedures and/or “alternative arrangements”, even in the absence of the department head. All activities of the compliance function have the same objective: in order to specifically address the figure of the compliance officer, it is advisable to deal in advance with the subject of the so-called compliance function. This is a specific function of the company aimed at strengthening the organizational and operational controls of companies in order to ensure full compliance with the legislation governing the activity carried out and the relations with their stakeholders, thus ensuring full and continuous compliance with the legislation in force. Companies must ensure that the compliance function within the company`s organizational structure is able to ensure that the director and the employees employed in it act independently in the performance of their duties. In this context, other operating units should refrain from giving instructions or influencing in any way the personnel responsible for monitoring compliance and their activities. F. ARECCO E G. CATELLANI, Cos`è la compliance aziendale, in Collana: Compliance, a cura di F.
ARECCO E G. CATELLANI, Milan, Wolters Kluwer, 2019. The objective of this article is to analyze the role of the Compliance Officer in the company and to understand the origin of this figure from the development of the internal control system (known as SCI[2]), which was implemented by legislative decree. 231/2001[3] and, in general, its framework for the overall system of corporate governance (so-called corporate governance). The guidelines are an updated version of the guidelines published in September 2012. Although the objectives and basic principles of the legislation on the compliance function have remained unchanged, the new guidelines have further strengthened, extended and, where appropriate, described in detail the responsibilities and organisational requirements of this function[1]. Within the Group Legal, General Counsel & Institutional Relations function, which reports to the CEO under the responsibility of Stefano Vincenzi as Group General Counsel, two new legal entities will be created. These include regulation and financial markets, as well as banking and hedging.
The first is entrusted to Francesco Vella, who is responsible for capital market support, corporate finance, treasury, market spaces, private banking, Group offices and foreign companies, as well as complaint management. In second place is Francesca Boriani, responsible for supporting loans, contracts, intra-group transactions, collateral analysis and process management. It is therefore possible to distinguish between two types of compilation function control. An external examination to identify the benchmarks within which the company`s activity will necessarily operate and interact because of its characteristics, structures, organisational model and social purpose (i.e. the purpose for which the activity is intended to be carried out). Internal review, in which the compilation work manifests itself in all its power, involves identifying areas at risk and the resulting internal regulatory/behavioral adjustment. The Compliance Officer is responsible for coordinating the compliance function in the most structured companies[17]. This number may be part of the SB because of the synergistic relationship mentioned above, and according to some, it is in fact appropriate for it to be part of it, as it fully meets the requirements of independence and professionalism imposed on the components of the SB, while knowing in detail the commercial reality and the risks to which it is exposed. [1] Zanin M. and Scavone E.M., Compliance function: Organizational responsibilities and requirements increase, www.dirittobancario.it An enterprise compliance expert also takes care of the strategic aspects of a business. Its activity is important because© you have to be inclined to find the CDs. Best practices of the required sector: On the one hand, it is necessary to respect the competitiveness of the company without violating or enforcing regulatory requirements.
Companies should ensure that the compliance function advises and supports management and employees on a daily basis and participates in the establishment of policies and procedures for investment services and activities (e.g. product governance and compensation policy) and any relevant organisational changes. Two new units will also be created within the Compliance & Group AML function, which reports to the CEO under Massimiliano Carnevali as Group Chief Compliance Officer (GCCO). In particular, it is the integrity of the compliance market entrusted to Maria Chiara Pellegrini, who will analyze, monitor and manage the risk of non-compliance and carry out checks on issues relating to the integrity of the markets of the CIB department and Mediobanca Private Banking, as well as the management of conflicts of interest, the UK branch being supervised by the Local Compliance Officer in London. On the same issues, the unit will also play a coordinating role for the subsidiaries. The second function is Compliance Investor Protection, entrusted to Aurelise Fede and Stefano Alifano, with the responsibility of analyzing, monitoring, managing the risk of non-compliance with the regulations applicable to clients and carrying out controls regarding the conduct and protection of investors and customers (governance of MiFID products, adequacy, incentives, banking transparency, IDD) for the CIB department and Mediobanca Private Banking. On the same issues, the unit also plays a coordinating role in the subsidiaries. These changes reflect the need to follow themes common to all areas of the Bank`s activities in order to ensure synergies and coherence of approach, including across the Group. The activities and tasks of the other units that already exist in both functions remain unchanged. Where the entity allocates financial assets to specific functions or actions, funds relating to the level of compliance risk to which the entity is exposed shall be allocated to the compliance function. The compliance function should also, as a minimum, review all aspects of product governance monitoring and systematically review information on financial instruments produced or distributed, including information on the distribution strategy, in order to assess whether product governance arrangements are functioning properly. [2] Sometimes referred to as SCIGR, where the acronym also includes risk management mechanisms.
It should be noted here that this acronym has evolved precisely to take into account the importance acquired over time by risk management business processes, which, as we will see, are the main prerogative of the compliance function and currently systematically integrate traditional internal control processes.