The regulatory regime for providing insurance products & services in Australia is complex.
Financial services laws, ASIC Reg Guides, APRA Prudential Standards, GI & Brokers Code of Practice, and Agreements (binder, agency, distribution & claims) create a plethora of obligations with severe consequences for non-compliance.
The primary purpose of compliance is to protect. Protect the business, its people, customers & other key stakeholders. How do you ensure that you achieve this purpose & not get pulled down the ‘tick-a-box checklist’ pathway that creates a multitude of rules, instructions & documents?
Here are some tips to effectively & efficiently manage the complexities of compliance:
𝙎𝙮𝙨𝙩𝙚𝙢𝙖𝙩𝙞𝙘 𝙖𝙥𝙥𝙧𝙤𝙖𝙘𝙝
Compliance management requires an operating rhythm. Adopting a systematic approach to compliance ensures that your compliance measures provide optimum protection to the business, its people & customers.
𝘾𝙡𝙚𝙖𝙧 𝙧𝙤𝙡𝙚𝙨 & 𝙧𝙚𝙨𝙥𝙤𝙣𝙨𝙞𝙗𝙞𝙡𝙞𝙩𝙞𝙚𝙨
Clarity around roles & responsibilities creates accountability. It also drives efficiencies & avoids gaps or duplication. Typically, the business performs the compliance task & activities while risk & compliance functions (or a risk & compliance committee) provide monitoring & oversight.
𝙀𝙙𝙪𝙘𝙖𝙩𝙞𝙤𝙣 & 𝙖𝙬𝙖𝙧𝙚𝙣𝙚𝙨𝙨
Compliance is complex, and training is essential. The training for employees & Authorised Reps must be practical, business-focused & lead people to understand why they should care. Caring results in doing.
𝙏𝙝𝙚 𝙙𝙤𝙞𝙣𝙜
A well-crafted document doesn’t provide protection. The protection comes from people reporting incidents, breaches & complaints; from undertaking compliance training in a timely fashion; from following systems & procedures & with a genuine desire to play their part in protecting the business, colleagues & customers.
𝙈𝙤𝙣𝙞𝙩𝙤𝙧𝙞𝙣𝙜 & 𝙨𝙪𝙥𝙚𝙧𝙫𝙞𝙨𝙞𝙤𝙣
‘You can’t see the forest for the trees’. Successful compliance arrangements include those who are doing with an added layer of protection provided by monitoring & supervision. There needs to be a degree of independence between doing & oversight.
𝘿𝙖𝙩𝙖 & 𝙧𝙚𝙥𝙤𝙧𝙩𝙞𝙣𝙜
A systematic approach to compliance produces data, lots of data. To be meaningful, this data must be analysed. To be valuable, this data must be reported. A systematic approach to compliance includes the use of data to validate the health of the compliance arrangements.
𝙀𝙫𝙞𝙙𝙚𝙣𝙘𝙚 𝙗𝙖𝙨𝙚𝙙
Effective documentation helps to educate, raise awareness & demonstrate whether or not you are complying with your obligations. Documentation also provides a transparent benchmark for accountability.
𝙍𝙞𝙨𝙠 & 𝘾𝙤𝙢𝙥𝙡𝙞𝙖𝙣𝙘𝙚 𝙂𝙤𝙫𝙚𝙧𝙣𝙖𝙣𝙘𝙚
The combination of the above elements provides good Governance ensuring that compliance is protected.
Contact me should you need assistance with your Compliance measures.