Compliance Management

Transcription

1 Compliance Management Reporting on legal and regulatory compliance 15 April 2015

2 Contact: Rahul Lovell; Partner; Jignesh Thakkar; Partner; Page 2

3 Business challenge Companies Act 2013 Section 134 (5d) = Directors responsibility statement Directors are to devise proper systems to ensure compliance with the provisions of all applicable laws and ensure that these systems are adequate and operate effectively Clause 49 (II/D/3) A Board is to periodically review the compliance reports of all laws applicable to a company, and prepared by it as well as the steps taken by it to rectify instances of noncompliance.. Multiple laws to comply with: Several changing from state to state Frequent changes in law Multiple lines of business: Multiple regulators and industry guidelines Constant alignment with changing regulatory policies in specific sectors Geographically spread operations: Operations across multiple locations Attrition and growth Supporting documentation Page 3

4 Addressing the challenge What are leading companies expecting? People must know what they need to comply with. Compliance owners must be proactively informed before compliances fall due They must be able to see health of compliance at any given point in time across entities and locations. Ability to hold people accountable for: Non-compliance Timely response to show-cause notices and litigation Timely closure of tax assessments Document & publish our positions under different laws Key query: simple framework that keeps us out of trouble Page 4

5 Meeting expectations How does EY support companies on compliance management? Provision of legal updates and quarterly reviews on compliance status 1 Delineation of compliance policy and framework 5 2 EY Compliance health check / basline Automation of reporting and monitoring through EY s Compliance Manager tool 4 3 Preparation of detailed checklist including compliance ownership Positions /Stand on law Alignment with process and policy Page 5

6 Implementing a compliance management program (What does it take?) 1 Inventorying your legal obligations 2 Segregating these into two categories Category A Conditions of work, infrastructure, procedures and statutory records Category B Licenses, registration, statutory records, displays, Returns and payments 3 Build these into your policies and processes. Policy Process There are some procedures I want to certify? Page 6

7 Implementing a compliance management program (What does it take) 4 Compiled checklists uploaded on EY s compliance tool. Review 9 Review of results of selfassessment and updates by users. 5 Scheduling of compliance on due date using EY s Compliance Manager. Compliance Manager Dashboard 8 Monitoring of compliance status and publication of results for the CFO s office. 6 Allocate tasks, send reminders, and customize escalation. 7 Ascertain users update status and upload proof of compliance. Page 7

8 EY s USP our Compliance Manager tool Key features Technology MS sharepoint Separate modules: 1. Licenses and environment compliance 2. Follow up 3. Compliance reviews Mobility-APP 1. Use of APP to update, monitor and follow up 2. Supports IOS and Android Integrated with EY s GRC suite Additional modules available on litigation,contract and controls Ownership and maintenance 1. Owned by EY 2. In-house development and maintenance team What this means for you 1. The tool can be easily integrated into your workflow engine. 2. Benefits for users: Tasks are pushed automatically into their outlook calendars. Rather than a simple yes/no response, separate workflows are designed for events, licenses, reporting of the environment, etc. 3. As a function head, you can take action on the go you do not need your laptop to check the status and follow up 4. As an administrator Special features take care of typical pain points-following up on defaulters, changing ownership of compliance at the click of a button, delegation etc. Changes in legislation are updated as a patch file. 5. Ongoing support and development of products 6. Seamless interplay across other GRC elements (such as controls and IA) for end-users and function heads Page 8

9 Case study 1 a global IT company Total of 23 countries covered All countries completed in three quarters Countries covered: Canada, Brazil, Mexico, Australia, Singapore, China, Japan, Hong Kong, Malaysia, New Zealand, the Philippines, the UAE, Russia, the Czech Republic, Mauritius, Spain, Poland, the United Kingdom, Switzerland, Germany, Belgium, France and the Netherlands EY s role Identification of applicable requirement for compliance across all markets specific to immigration, employment and payroll-related laws In-depth analysis of current business and compliance processes to identify gaps, based on review of data, evidence and discussions. Building a mapping structure that is customized to every market to suit its local needs Setting up of the PMO for centralized coordination EY s advantage Focused on business performance by aligning business processes to critical compliance requirements Integrated global approach End-to-end solution from diagnosis to execution Customization of services based on local relevance Access to leading subject matter experts on Employment Law, Immigration and Payroll Tax Page 9

10 Case study 2 A chemicals company Key accomplishments 98% of compliance assessed by the second month of implementation Compliance reports presented to Board of Directors by the Compliance Manager About the company Our role No. of plants: No. of branches: 3 4 Content prepared and reviewed by legal experts every two months Creation of policy and framework 1 month No. of CFAs: 63 Deployment and training 1 month Hand holding support 3 months Compliance stats No. of Acts/Provisions 191 EY s advantage No extra FTE required by organization to sustain its compliance program No. of users/approvers: 30 Client able to extend the framework across three locations after the initial launch of the product No. of compliances No. of compliances mapped per user 2, Covered an extra 1,600 compliances which were not covered in organization's prior checklists Page 10

11 Case study 3 a large consumer durables company Engagement description: assessing readiness of compliance Review of compliance Team size: >35 Duration 6 weeks Multi-disciplinary team across SLs specialists from Tax, CcaSS, risk and our legal team India selected as pilot for global roll out Locations: corporate offices, two plants, regional offices, warehouses and service centers Issues addressed: 1. What are the key regulatory requirements of your company? 2. How do its processes and policies address these requirements? 3. How should the company address requirements as part of its business? Impact: 1. Creation of comprehensive library of regulation and controls 2. Examination of positions taken by company 3. Identification of gaps and benchmarking these with the practices of leading companies 4. Creation of a road-map to embed compliance in business as including expansion and new product launches Page 11

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