Identify a specific MAS regulatory requirement, for a firm in a regulated financial services sector with which you are familiar. State the type of firm you are referring to and then produce a note for the head of compliance which:
- highlights the objective
- identifies the business unit/activity it primarily affects
- comments on the measures that need to be taken to fulfill this requirement.
The ‘three lines of defense model is often referred to in the financial services industry. Write a summary explaining the term ‘three lines of defense’ as it relates to compliance risk management in a regulated firm.
A recent internal audit has highlighted significant failings in the identification and verification of natural persons appointed to act on a customer’s behalf. Follow-up discussions with staff revealed that they were unclear about the regulatory requirements. Your tasks are to:
a) state the key regulatory requirement(s) not being met
b) in light of your answer to a) above, draft a short paragraph for distribution to all relevant staff outlining what action(s) they need to take
c) prepare a short paragraph for inclusion in the overall report to the board of directors that identifies what corrective action/additional controls will be put in place to address the issue