We are a leading regulatory compliance consulting firm in Singapore that can conduct your compliance audit as required by licensing regulations of MAS.
If your Company is holding any License issued by the Monetary Authority of Singapore, then you would have noticed that there is a requirement to have a compliance function. The typical requirement is “The applicant must have in place plans for compliance arrangements that are commensurate with the nature, scale and complexity of its business”.
This at a ground level means three things:
Quite often we see that companies have an extensive compliance manual and all checks and controls are in place. The only problem is, what is done in actual practice is quite different than what is written in the manual. The manual says to do a specific process in a specified manner, but in reality, none of those processes are followed.
In such a case, if MAS conducts audit of your operations or if any issues are reported then its going to be a problem for your company. This problem can be solved by conducting a Compliance Audit periodically.
Compliance audit can be conducted either by in house staff, or staff from your head office or from a third party service provider firm like ours. We in this case visit your office and check for events in the preceding period and check the documentation and the procedures followed for it.
In a Compliance audit, the team goes through the various events that happened in the preceding period and check it against your compliance policy. If the policy is followed then the result of that test is a success, otherwise its not.
Example 1 : Your policy states that an investment decision must be recommended by an officer and approved by the CEO. Then the audit team will go through few recent investment decisions made and will check if the policy is followed or not.
Example 2 : Your policy state that every employee must go on leave for atleast for 10 days continuous duration in a year. Then the audit team will ask for proof that this rule is followed.
So every element of the policy will be checked for the proof of its execution in real practice.
When your staff knows that a compliance audit is periodically conducted and the report is submitted to the management, and if there are any lapses, disciplinary action may be taken. They tend to be then quite careful. We have generally seen that when our periodic audit service is signed up, in such a company, employees follow the policies much more rigorously. Because these employees know that one day there will be an audit and the report will be sent to the HQ.
Sometimes your business model changes, new investment products come into the fund strategy. However, the compliance manual was created a while back and it doesn’t deal with these new products or strategies. These kind of gaps are often revealed by the compliance audit. Once identified, remediation can be done by adjusting the policy appropriately.
Conducting periodic audit is one of the MAS licensing conditions. Obviously, that means you will need to make arrangements for the same. It is one of the tenets of effective regulation to ensure clarity and consistency of operations.
We are a regulatory Compliance Consulting firm based in Singapore. We can provide you compliance audit services for your Fund / Fintech operations. Get in touch with our team today for more details.
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