FRFI’s Compliance Oversight: A Key Component of Our Risk Management Strategy
As a leading financial institution, [FRFI Name] understands the importance of effective compliance oversight in managing regulatory compliance risks. We are committed to ensuring that our compliance framework is robust and scalable to meet the evolving demands of the financial industry.
Our Second Line of Defence: Compliance Function
Our compliance function operates as a second line of defence, providing independent monitoring and testing of our compliance controls. Using a risk-based approach, our compliance team verifies key information used in compliance reporting, including significant remediation activities, to ensure that we are operating within the bounds of applicable regulatory requirements.
Independent Review and Reporting
To validate the adequacy and effectiveness of our compliance oversight, Internal Audit or other independent review functions conduct periodic reviews. Significant review findings are reported to operational management, the Chief Compliance Officer (CCO), and Senior Management, ensuring that corrective actions are taken in a timely manner.
Clear Documentation and Roles
All individuals involved in risk management and compliance have clear roles and responsibilities documented. Our day-to-day and independent oversight review levels of key control elements produce sufficient documentation that demonstrates how regulatory compliance risk is managed and supports the flow of information reported to the CCO and Senior Management.
Senior Management Oversight
Our Senior Management is committed to overseeing our Risk Compliance Management (RCM) framework, ensuring that it is designed, implemented, and maintained in a manner tailored to each business activity. We take reasonable measures to assure that:
- Compliance policies, procedures, and practices are adequate and applied according to their terms by qualified individuals;
- All staff understand their responsibilities for complying with such policies, procedures, and processes; and
- Key results of day-to-day compliance controls and independent oversight functions are reported to those who need to know.
OSFI Supervisory Assessment
The Office of the Superintendent of Financial Institutions (OSFI) conducts supervisory work to assess our safety and soundness, control and governance processes, and regulatory compliance. Our RCM framework is assessed against the expectations outlined in this guideline. We believe that a robust compliance oversight function is essential in managing our regulatory compliance risks, and we are committed to continuously improving our risk management practices.
Conclusion
By implementing these measures, we demonstrate our commitment to effective compliance oversight, ensuring that our financial institution operates with integrity, transparency, and accountability.