Your Firm is Currently in Discussion with a Large Overseas Organization with a View: Compliance & Regulatory Advisory Assignment, ICTA, Singapore

Question 1:

Your firm is currently in discussion with a large overseas organization with a view to a merger. The other firm mainly operates in jurisdictions that are not as well regulated as Singapore. Their CEO is due to visit your firm next week. Ahead of the meeting, you have been asked to help your CEO by preparing a note to brief him on the following aspects:

1. The main features of the regulatory framework governing your firm (within your job specialization) and the purposes served by the main legal and regulatory laws and regulations (at least three) and their requirements.
2. The mandates, structures, and powers of the key regulatory, trade, and professional bodies (covering at least two bodies) that have either regulatory oversight of or an impact on, the firm.
3. How the compliance unit ensures the effective conduct of the business of the firm (describe at least three ways).
4. The best practices the compliance unit would recommend to a prospective foreign partner for the conduct of business rules and regulations (identify at least two each for two business areas or two products services). and their potential implications for the firm and its work practices, policies, and procedures.

Your answer should be between 800-1,200 words.

Question 2:

‘Firms will want to design new financial products and services that are seen to be as competitive as possible. There may be an inclination to heavily promote the positive points but underplay, or even ignore, the perceived negative issues such as minimum term, higher-risk investment strategy, etc. The in-house new product development committee must ensure that the promotion of the product is fair, clear, and not misleading.’

You are required to analyze the above statement critically, using a newly regulated product, service, or activity (within your job specialization) as an example to:

1. the highlight at least two significant regulatory compliance risks/issues
2. describe the corresponding significant measures (at least two) that must be taken for proper legal and regulatory compliance due diligence, and to minimize the compliance risks and concerns, and
3. describe the implications of the failure to minimize these risks and concerns (at least two).

Question 3:

The analysis undertaken in Question 3 has proved to be a huge success for the firm. The firm has therefore decided to increase the scope and you have been asked to prepare the briefing notes for junior compliance officers on:

1. two key legal and regulatory compliance requirements applicable to the firm for the newly regulated product, service or activity (based on the example you have used in Question 3)
2. two typical issues and problems that customers might encounter with the sales of this new financial product, service or activity offered by the firm and the associated escalation processes in place to raise such concerns to the firm’s senior management when deemed necessary
3. two examples of situations in which the regulator needs to be approached on material adverse issues arid compliance breaches, and
4. two examples of how best to support senior compliance officers’ advisory work from the perspective of the head of compliance and the firm.

You should select a financial institution of your choice in relation to your job specialization. You may use examples, illustrations, or diagrams, where appropriate.