Page 47 - CAPE Financial Services Syllabus Macmillan_Neat

UNIT 2
MODULE 2: COMPLIANCE LEGISLATION AND STATUTES (cont’d)
SPECIFIC OBJECTIVES
Students should be able to:
2. describe the key functions of a
compliance department in financial
institutions;
3. discuss the generally accepted core
values of financial services
regulation;
4. explain the concept of legislation in
the context of financial services;
5. describe the functions of a
regulator;
CXC A38/U2/16
CONTENT
(a) The key functions of a compliance
department:
(i) identification of risk;
(ii) designing and implementing
controls;
(iii) monitor and report on
effectiveness of controls; and,
(iv) protection of investors and
consumers.
(b) The duty, objective and responsibility
a compliance officer performs.
(a) ensuring that markets are fair,
efficient and transparent;
(b) reduction of unsystematic risks; and,
(c) reduction of financial crime.
(a) primary legislation; and,
(b) secondary legislation.
Examples of the functions of a regulator:
(a) authorise financial services business;
(b) determine business rules;
(c) supervise compliance with rules;
(d) conduct investigations; and,
(e) enforce rules.
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