Long Term Insurance Act, 1998 (Act No. 52 of 1998)Board NoticesNotice on Governance and Risk Management Framework for Insurers, 2014Part 5 : Internal Control System25. Compliance function |
| (1) | The compliance function must establish, implement and maintain appropriate mechanisms and activities to— |
| (a) | assist the board of directors and managing executives in carrying out their respective responsibilities; |
| (b) | establish, implement and maintain a risk-based compliance plan; |
| (c) | promote a compliance culture that values responsible conduct and compliance with internal and external obligations; |
| (d) | identify, assess and report on key legal and regulatory obligations and the risks associated therewith, including obligations under the Act; |
| (e) | assess the appropriateness of policies, processes, and controls in respect of key areas of legal, regulatory, and ethical obligations and the effective monitoring thereof by the insurer; |
| (f) | ensure that regular training is conducted on key legal and regulatory obligations particularly for employees in positions of trust or responsibility or who are involved in activities that have significant legal or regulatory risk; |
| (g) | facilitate the confidential reporting by employees of concerns, shortcomings or potential non-compliance in respect of the insurer's policies, legal or regulatory obligations, or ethical considerations; |
| (h) | monitor compliance shortcomings and instances of non-compliance, including ensuring that adequate disciplinary actions are taken where appropriate and any necessary reporting to the Authority or other relevant regulatory authorities is made; and |
| (i) | conduct regular assessments of the compliance function and the compliance policies and systems and implement or monitor needed improvements. |
| (2) | The compliance function must have access to and report to the board of directors or a committee of the board identified by the board of directors on— |
| (a) | the strategy of the compliance function; |
| (b) | the compliance plan, including specific annual or other short-term goals being pursued and the performance against such goals; |
| (c) | information on its resources, including an analysis on the appropriateness of those resources; |
| (d) | an assessment of the key compliance risks the insurer faces and the steps being taken to address them; |
| (e) | an assessment of how the various parts of the insurer are performing against compliance standards and goals; |
| (f) | any compliance issues involving management or persons in positions of major responsibility within the insurer, and the status of any associated investigation or other actions being taken; |
| (g) | material instances of non-compliance or concerns involving any other person or part of the insurer and the status of any associated investigations or other actions being taken; and |
| (h) | material fines or other disciplinary actions taken by any regulatory authority in respect of the insurer or any employee. |