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Corruption and Compliance
Asia Congress 2013
25th
June 2013
Presented by
Sam Gibbins
Director, International Compliance As...
Closing the Gap between
Culture and Compliance
through Localisation
Morals and work ethic
“How do we behave when we think
nobody is looking?’’
Compliance Culture starts at…
Chatswood Consulting Ltd
www.chatswood.co.nz
… the top.
Often one key component is
overlooked…
Kirk O. Hanson
May 2008
Singapore Law Watch
June 14th
2013
‘Some of the biggest SGX listed
companies still giving scant
details or none at all’
The organisation needs to
open lines of both horizontal
and vertical communication
The compliance culture,
programme and your staff
Every firm has a (general) culture, which drives
• The way power flows
• The way people, especially management, communicat...
• To develop an appropriate compliance culture
• To provide training
• To provide consultancy to the Business Units
• To i...
It is also important to
remember that in different
jurisdictions you are at a
different ‘Starting Point’…
…therefore one cannot
assume everyone already
has an ingrained
understanding of culture
and ethical values.
The Guardian
January 4th
2013
Otto Bruderer, a managing partner of
the bank, told a New York court:
"Wegelin was aware tha...
securitymanagement.com
April 27th
2012
•‘Morgan Stanley maintained significant
internal controls designed to prevent
such ...
Is it possible to measure the Integrity and Ethics of an
individual, or even of an organisation?
In April 2013, the CISI b...
Localisation is crucial to spread a
coherent and relevant message to
your staff.
Wearesocial.org
December 7th
2012
Firstmonday.org
May 6th
2013
Training should take the form of a risk based
approach.
- who?
- what?
- where?
- why?
- how?
Should everyone be doing the...
70:20:10
70% on the job tasks, experiences and problem solving
10% structured training
20% feedback, working around proble...
E-learning v Face to Face Training?
Key Compliance Framework Issues
• Ultimate responsibility for compliance rests with
senior management
• The compliance fun...
Key Compliance Framework Issues
• The compliance function is instrumental in
embedding a strong compliance culture
through...
www.morecarrot.com
July 19th
2012
It’s official: establishing a culture of compliance in the
workplace – and communicating...
• There is no ‘one size fits all’ solution
• Firms need to assess what they need, and how
best to achieve this
• This can ...
- END -
My thanks to you all for listening
and, where applicable, staying
awake
Sam Gibbins
Director
International Compliance Association
sgibbins@int-comp.org
+65 6500 0012
Contact Information
Corruption and Compliance Asia 2013 - Hong Kong
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Corruption and Compliance Asia 2013 - Hong Kong

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Corruption and Compliance Asia 2013 - Hong Kong

  1. 1. Corruption and Compliance Asia Congress 2013 25th June 2013 Presented by Sam Gibbins Director, International Compliance Association
  2. 2. Closing the Gap between Culture and Compliance through Localisation
  3. 3. Morals and work ethic “How do we behave when we think nobody is looking?’’
  4. 4. Compliance Culture starts at…
  5. 5. Chatswood Consulting Ltd www.chatswood.co.nz … the top.
  6. 6. Often one key component is overlooked…
  7. 7. Kirk O. Hanson May 2008
  8. 8. Singapore Law Watch June 14th 2013 ‘Some of the biggest SGX listed companies still giving scant details or none at all’
  9. 9. The organisation needs to open lines of both horizontal and vertical communication
  10. 10. The compliance culture, programme and your staff
  11. 11. Every firm has a (general) culture, which drives • The way power flows • The way people, especially management, communicate • The risk appetite • The way things are done • The energy (and resource) levels applied Cultures are pervasive, and exist across the firm Shaping your firm’s Compliance culture and its compliance programme
  12. 12. • To develop an appropriate compliance culture • To provide training • To provide consultancy to the Business Units • To implement, monitor and report on standards of compliance • To interface between the firm and its regulators Typical contents of a Compliance Function Terms of Reference
  13. 13. It is also important to remember that in different jurisdictions you are at a different ‘Starting Point’…
  14. 14. …therefore one cannot assume everyone already has an ingrained understanding of culture and ethical values.
  15. 15. The Guardian January 4th 2013 Otto Bruderer, a managing partner of the bank, told a New York court: "Wegelin was aware that this conduct was wrong… From about 2002 through to about 2010, Wegelin agreed with certain US taxpayers to evade the US tax obligations of these US taxpayer clients, who filed false tax returns with the IRS.”
  16. 16. securitymanagement.com April 27th 2012 •‘Morgan Stanley maintained significant internal controls designed to prevent such corruption’ •The policies were updated regularly and employees were trained in FCPA compliance •Records showed that Morgan Stanley trained Peterson on the FCPA seven times during the time frame of the fraud and reminded him of FCPA rules 35 times
  17. 17. Is it possible to measure the Integrity and Ethics of an individual, or even of an organisation? In April 2013, the CISI became the first professional body to require candidates taking customer facing entry level examinations for wholesale/capital markets financial services activities to pass an integrity test. Wholesale/capital markets practitioners in the UK now need to complete IntegrityMatters test, and pass with an A or B grade, prior to taking their CISI exams
  18. 18. Localisation is crucial to spread a coherent and relevant message to your staff.
  19. 19. Wearesocial.org December 7th 2012
  20. 20. Firstmonday.org May 6th 2013
  21. 21. Training should take the form of a risk based approach. - who? - what? - where? - why? - how? Should everyone be doing the same training?
  22. 22. 70:20:10 70% on the job tasks, experiences and problem solving 10% structured training 20% feedback, working around problems relating to need There are some limitations to this model; measurements, record keeping, suitability, career exposure, previous training, to name but a few.
  23. 23. E-learning v Face to Face Training?
  24. 24. Key Compliance Framework Issues • Ultimate responsibility for compliance rests with senior management • The compliance function is developed and used by senior management as a critical tool, complementing other key risk management functions such as internal audit • The compliance function is independent but sufficiently close to business operations to be effective
  25. 25. Key Compliance Framework Issues • The compliance function is instrumental in embedding a strong compliance culture throughout the organisation • The compliance function ensures ongoing compliance with regulatory requirements or at least is capable of timely remedial action
  26. 26. www.morecarrot.com July 19th 2012 It’s official: establishing a culture of compliance in the workplace – and communicating it clearly – can help you earn a get out-of-jail card in the courtroom.
  27. 27. • There is no ‘one size fits all’ solution • Firms need to assess what they need, and how best to achieve this • This can vary to a large extent from one location to another • What is best for your competitor may not be best for you • There is no perfect answer! Conclusion
  28. 28. - END - My thanks to you all for listening and, where applicable, staying awake
  29. 29. Sam Gibbins Director International Compliance Association sgibbins@int-comp.org +65 6500 0012 Contact Information

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