Compliance
Bermejo Martínez y Asociados Law Firm
Everything you need to know about compliance
One reality that runs through the legal world is that it is in constant change. This reality has meant that ever more rules, standards and even “good practices” are emerging, which are mandatory in order to avoid committing an offence.
In this regard, since 2010, with the reform of the Criminal Code, companies are under an obligation to attend to any regulations or instructions that emerge to improve the transparency of their operations.
For their part, these companies must create a whole structure that complies with such instructions, with a view to preventing offences from occurring, for which, in turn, the director will be responsible.
Is a compliance officer necessary in Santander?
The answer is a resounding yes. Anyone who runs a company knows how complex each process can be and the risks they involve. Even through the irresponsibility of one of its employees, the whole company can find itself caught up in an unlawful act.
In this regard, it becomes necessary to have a compliance officer, who designs a whole system of internal rules for the company itself, known as good practices, to which the entire structure and workforce must adapt. In turn, this professional becomes the person responsible for ensuring that such rules are effectively complied with.
Such is the importance of having this type of professional that, without one, any company can easily be accused of an unlawful act for not having the proper structure and management of the transparency and honesty rules that are emerging in different sectors.
What are the functions of a compliance officer?
The first thing this compliance officer must do is analyse how the whole company operates and carry out an analysis or matrix of strengths, weaknesses, opportunities and threats (SWOT), and then:
CREATE A CODE OR SYSTEM OF RULES FOR THE COMPANY
This is one of the most important points to bear in mind. In this system of internal rules for the company, the lawyer who is an expert in compliance must try to bring together all the procedures, rules and other good practices issued by the bodies that regulate the activity the company is engaged in.
So, for example, if it is a brokerage, insurance or financing company, the compliance officer must be fully across every regulation, resolution or procedures manual issued by the institutions that regulate the insurance and financial sector, and then create a system that can be applied within the relevant company and carried out by each of its employees.
CONTROL OF APPLICATION
The other aspect on which the compliance officer’s functions rest is ensuring that the rules set out in the relevant code are complied with by each and every member of the company. To this end, it is prudent to establish:
– Educational talks and workshops to inform staff about the new obligations.
– Creating an internal system of sanctions to penalise breaches of the established rules.
– Setting up an appropriate information management system (document repositories, an internal messaging system and encryption of information) that guarantees its confidentiality.
This is where the lawyer becomes a true officer, as they must ensure that all members of the company adapt to this new way of operating.
CONTROL OF UPDATES
The regulatory functions of compliance do not end with the drawing up of the relevant manual or code. On the contrary, the officer must keep constantly up to date with the new laws or regulatory instruments that are issued, and then adapt them to how the company operates.
What does the company commit to if it engages a compliance officer?
One of the most important things every company must bear in mind when engaging the services of a compliance officer is that they must be given full autonomy in their functions, so it will be necessary for them to have access to all of the company’s management systems. Only in this way can it be guaranteed that their functions are fully carried out.
In any case, it should be remembered that every legal professional is required by law to maintain absolute confidentiality regarding their clients’ affairs. Likewise, it is always advisable to assess the track record of that professional. In any event, we place at your disposal our services, which enjoy the greatest and best reputation in Santander.
The company’s lawyer and the compliance officer are very different roles
Every company usually has its in-house lawyer or consultant for the relevant legal procedures. However, the functions of this lawyer and those of the compliance officer are not the same and, in fact, it is recommended that they be different people.
In any case, it is necessary to remember that the level of trust and responsibility required of the compliance officer in their functions is very high, since they even become liable before the courts in the event of improper handling of their functions. On the other hand, this officer is even under an obligation to supervise and regulate how the company’s lawyer will carry out their functions, all with a view to preventing possible unlawful acts.
Likewise, it should be remembered that the compliance lawyer cannot be of just any profile, but must necessarily be a professional with extensive experience and knowledge of the subject matter on which they are working. In any case, do not hesitate to contact us so that we can place at your disposal the profile of our professionals, who will no doubt fit your requirements.
At BBMAbogados we are specialists in Compliance. Do not hesitate to contact us.
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