annual report 2009
LEGAL COMPLIANCE
The compliance function’s purpose is to provide assurance to the board that the group is compliant with applicable legislation.
Within the group, the compliance function is split into three areas: one area focuses on general compliance and on the co-ordination of group compliance, another on retail credit compliance, with the third focusing on compliance within the RCS Group.
The past few years have seen a flurry of legislative activity with new laws, amendments to existing laws and draft laws.
New pieces of legislation that will affect the group include the following:
- Consumer Protection Bill;
- Companies Act;
- Protection of Personal Information Bill; and
- Regulation of Interception of Communications Amendment Bill.
The group has working groups in place to ensure that once these laws are effective, we will be in a position to comply with their provisions.
Ongoing changes to fiscal legislation are monitored and implemented by the group’s tax department.
The draft of King III is also being closely monitored to ensure that the group will be compliant once it is in its final form.
The group compliance officer gives report-backs at each audit committee meeting.
The responsibilities of the three areas of the compliance function include:
- identifying and advising the group on existing and new legislation that is applicable to the group’s business;
- facilitating compliance with relevant legislation and assigning responsibility for areas of compliance;
- facilitating compliance with internal policies, rules, guidelines and procedures; and
- monitoring of compliance.
The internal audit department and the compliance function work closely together, with the former assisting at times with monitoring compliance. Where significant compliance issues are identified they are referred for independent review to outsourced experts.
