Question 1.

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.

Question 2.

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.

Question 3.

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