Who is a Compliance Officer?
A Compliance Officer is a senior employee of the company, who ensures that the company is in compliance with all laws and regulations that are applicable to it. A Compliance Officer must have a thorough knowledge of the company, and its business(es), and a clear understanding of the areas where there is a possibility of a regulatory breach.
A Compliance officer’s role includes
Whom does a Compliance Officer report to?
Ensuring compliance is one of the primary roles of the Board. The Compliance Officer reports to the Board on the status of compliance within the company. Also, as a management person, he/she reports to the CEO/ Managing Director of the company.
Compliance Officer and Company Secretary - Can it be one person?
In many organisations, both functions are discharged by a Company Secretary. As there is an overlap in duties between the two roles, many organisations have the same person manning the two positions. However, there are some organisations, such as banks, who appoint a separate individual as a compliance officer, consistent with its significance in the bank.
With compliance becoming increasingly more important, the role of the Compliance Officer has become centre stage. The responsibility of a Compliance Officer is not only to ensure compliance within the organisation but also to ensure that there are proper processes to ensure compliance.