International Organisation (IO) firm regulations in jurisdiction questions and answers

The total word count for this assignment should be between 2,500 and 3,500 words. This includes all in text references and appendices but excludes any footnotes, reference page or contents page. N.B. Appendices should only be used in exceptional circumstances and should consist of only brief extracts or tables.

All questions can be answered in relation to a jurisdiction with which you are familiar.

Where a specific jurisdiction has been selected this should be clearly stated in your answer.

Answer all questions.

Read through the scenarios at the beginning of each question and write with reference to these in your answers.

Question 1

International Organisation (IO) is a firm regulated in a jurisdiction and sector of your choice. It has a national network of offices. IO’s senior management believe that it has solid and close relationships with its customers and that its customer services processes are effective.

Historically, customers of IO have made few complaints and when they have done so a very conservative and defensive approach has been adopted in dealing with them. The company’s head of legal has overall responsibility for complaints management and has encouraged this defensive attitude. The executive board of IO take very little day-to-day interest in complaints, leaving matters entirely up to him.

The internal organisation of IO has not changed for many years. It is very formal and hierarchical. There is little informal interaction between different areas of the organisation, with relationship focus predominantly focused on business interactions. Though efforts have been made to address this recently, following the appointment of a number of new senior staff, this approach is encouraged by many senior management, who prefer a more formal approach, viewing this as more ‘professional’ and supportive of IO’s business objectives.

Reflecting the general business approach within IO, there is little contact or effective means of feedback between those handling complaints and other areas of the business such as customer service, risk management and product design.

Key management information shows that there has been a slow, but steady, decline in revenues at IO over recent years. It is apparent from the information available that this is largely attributable to falls in repeat business and reductions in new business, combined with a poor service culture that has clearly contributed to customers taking their business elsewhere.

a) Identify the main issues with the existing procedures in place and the attitude and approach of the various stakeholders at IO that would cause you, as a GRC professional, concern. Explain why you have these concerns, supporting your answer with appropriate examples.

b) Set out proposals for addressing the concerns raised in respect of the existing complaints handling process, making clear what changes you would recommend and why these would be of benefit to IO.

Question 2

IO has approximately 500 staff, with the majority based at head office and the remainder at a number of branches located throughout your chosen jurisdiction. IO provides a wide range of products and services to customers both in that jurisdiction and overseas and is keen to expand further. A new sales director has recently joined the company and is leading the sales team in a development project intended to meet this expansion objective.

John has worked in the assurance functions of IO for several years and last year was promoted to a senior post in the regulatory compliance team. Since then, he has worked on a number of initiatives intended to develop effective relationships with the rest of the business, as this was an area that had not received a great amount of focus previously. As part of this, members of the compliance function had begun to regularly attend team and development meetings within the business units and were beginning to be consulted about proposed plans at an early stage in order to provide guidance and feedback.

The early feedback from these initiatives has generally been very positive, helping to improve relationships and smoothing communication between compliance and the business units. However, John has noted that since the appointment of the new sales director, fewer invitations to such meetings with the sales team have been forthcoming and, furthermore, his own recent attempts to arrange a one to one meeting with the sales director himself have been unsuccessful.

Concerned at the possible implications of these developments and the lack of input of the compliance team into the operational sales plans, John’s worries deepen following the output of recent monitoring and review activities – from the compliance team and internal audit respectively – which have identified several areas in which sales policy and procedures have not been closely adhered to. Further investigation appears to suggest that corners are being cut in an attempt to speed up the processing of new business.

What action would you recommend John now takes and why do you believe this to be the best course of action?

In your answer, identify what risks are posed to IO by the activities referred to in the above scenario, who poses these risks and what should be done to address these.

Question 3

The previous head of regulatory compliance left IO recently and you have now been appointed as interim head of the regulatory compliance department.

As part of efforts to address some of the issues previously highlighted at IO, the organisation is undergoing an internal restructure. You have been informed by the board that all function heads will now be responsible for risk management in their own area of business.

You have therefore been asked to design a risk management process specifically for the regulatory compliance function in the form of a short report for the board and senior management. This report must include a description of what is required at each stage of the process and an explanation of why the approach you are proposing will be effective in the risk management of the regulatory compliance function and supporting the objectives of IO overall.

Produce this paper.

Question 4

You have now been made aware that the regulator of IO is about to undertake a visit and you are keen to ensure everything is in order. In particular, given the current upheaval within IO following the ongoing organisational changes, you wish to ensure that all those likely to be involved in the visit are clear on requirements and that appropriate preparations are in place to ensure the visit proceeds as smoothly as possible.

During your preparations for the visit, you are in the process of completing a review of the firm’s most recent post-regulatory visit ‘actions report’ following a visit that took place last year. Whilst examining the post-regulatory visit report (written by your predecessor), along with a copy of a subsequent Internal Audit Risk Log, you realise that in the detail of both documents the same point relating to the lack of staff training has been raised repeatedly. However, it was not highlighted in the Executive Summary section of either document as a significant issue, nor was it noted in the board minutes detailing discussions around the regulatory visit.

The issues identified in the previous post-regulatory visit report and Internal Audit Risk Log specifically relate to timing, regularity and content of training around conduct of business activities. From the documentation and records you have been able to review, there appears to be a lack of clarity as to what action has been taken to address these matters.

You schedule a meeting with the executive board to discuss your findings and planned actions ahead of the upcoming regulatory visit.

Prepare a briefing paper to act as the basis of discussions during your forthcoming meeting with the board. In this, you should:

• • provide a brief summary of the proposed regulatory visit, highlighting whom it is likely the regulator will wish to interview and why, identifying and apportioning key pre-visit tasks and responsibilities

• • provide an overview of your findings in relation to the staff training point, highlighting the risks arising from this and setting out proposals to address these

• • identify potential opportunities and challenges arising from the visit, with a rationale for each, plus a clear indication of how these will be managed.

Relevant examples should be provided in support of the points made. (Consider the middle east market on your examples)

Type of service: Academic paper writing

Type of assignment: Writing from scratch

Subject: law

Pages / words: 5 / 1400

Number of sources: 2

Academic level: Undergraduate

Paper format: APA

Line spacing: Double

Language style: US English

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