What is Compliance?
The compliance is the action or process to comply with the official recommendations and requirements. In every area, including the financial one, ‘rules are to be obeyed’. Rules applying to financial information are more extensive than those applicable to ordinary goods.
In the financial sector, the purpose of rules is to ensure that the client is given enough information to select the most suitable investment, according to his profile. The profile of the investor is highly relevant, as not all the investments are valuable for all investors. In addition, rules allow our banking partners to obtain enough information to give high-quality advice. Lastly, rules are a tool to fight against money laundering and terrorist financing. For all these reasons, compliance is the rule, and not an objective, at Euseco.
How to spot our Compliance?
We show common sense. We know you, and have studied your needs. We are qualified in our area. We give detailed, honest and transparent advice. We communicate thoughtfully. We give you information in order for you to be able to take decisions knowingly. We fight against money laundering and terrorist financing.
To put it in a nutshell, we work with diligence and skills.
Due diligence obligation
Euseco does not accept to work with clients involved in money laundering or terrorism. In that regard, our compliance service conducts audits of due diligence on every future clients commitments of our banking partners. The main purpose of this due diligence process is to identify the person in charge of each commitment, and to have a specific understanding of his situation. We will never accept to take part in terrorist financing or money laundering. Therefore, our control is very conscientious.
Our Compliance service covers a broad range of sectors, such as:
- Compliance with law, with professionals, with rules specific to a sector.
- Preserving the image and standing of the company and of its managers.
- Prevention of corruption, financial crimes (accurate accounting, financial information, anticorruption (Sarbanes Oxley, audit), insider trading, conflict of interests) and social and environmental issues.
- Compliance with competition law
- Compliance with good business practices (expense reports, donation, gifts etc).
- Data protection
- Compliance with intellectual property (trademarks, patents, internal know-how of the company, image rights).
- Protection of the use of goods and information about the company, non-competition of employees.
- Prevention of social and corporate responsibility, of sustainable development.
- Prevention of responsibilities and requirements towards the providers (fair wages and working hours, no child labour, safety rules, freedom of association etc).
Risk mapping shows that risks are getting more and more specific to each sector and each kind of company.
Is Compliance a strategic challenge for a company?
A: At first, compliance might appear as a restriction, involving many costs for the companies. However, within a short timeframe, compliance proves to be an essential element regarding competitiveness. From a business and operational perspective, it is a unique tool for the organization and for both the internal and the external growths of the company, ensuring cohesion of the employees around shared values.
The compliance program helps to maintain a positive image of the company, a key element of trust for clients and providers, and a guarantee of the smooth operation and good governance for shareholders, while limiting the risks to which the company might be exposed.
A well-applied compliance program allows the company to identify risks and to ensure an effective management.
In addition, the compliance program is a guarantee of a better cooperation with public authorities and jurisdictions.
In practice, how to adjust the Compliance program to the company?
A: The means of application and organization of compliance are adjustable to every company, to every type of business, to every corporate culture, to every sector. Many strategies are available. However, regardless of the chosen organization, exemplarity is the cornerstone. Indeed, the executives (first of all, the President) have to show their support and promote the program, in a realistic and operative way.
Furthermore, it is necessary to heighten awareness of the employees about the challenge of compliance and to communicate on the risks.
What scope for Compliance within a company?
A: The scope for compliance depends on the activity of the company and regulates a variety of fields, such as: law enforcement, professional codes, specific rules applicable to the sector, financial crimes, conflicts of interests, insider trading; compliance with competition law; good business practice; intellectual property; data protection; social responsibility; environment and sustainable development; responsibility towards providers; use of goods and confidential information of the company; non-competition of employees.
Increasingly, compliance programs take into account topics that are specific to each sector. This includes for instance safety rules, hygiene, working conditions of suppliers and traceability.
Shall the Compliance program have a devolved function?
A: Because of its inherently adaptable character, compliance within the company applies in accordance with the corporate culture, either through a devolved function, or through a collaborative mode at every level. To maximize the compliance program, the best option is to set up an autonomous unit ‘ethics and compliance’. Otherwise, the program can be integrated into an existing unit, with operative and/or functional relays within various units and geographical areas.
What will the Compliance officer be in charge of?
A: The compliance officer shall have a global and transversal vision of the company, coupled to a deep understanding of it. He shall be able to anticipate constrains and risks. His function is:
- To advise, to strengthen awareness and to control. He shall audit the chains of delegation of powers, analyse the conflicts of interests, establish a risk mapping and ensure the traceability of any information. In addition, he shall identify the areas and persons at risk, the mechanisms and the challenges, the checkpoint and the required reporting.
- Furthermore, he shall assess the economic elements: quantify the costs linked to the difficulties.
- The compliance officer interacts in a transversal way with the various units and directions, while being strongly connected with the highest level of decision.
- He is also in charge of the interface with the controller.
Therefore, the duty of the compliance officer is very broad: he is in charge of controlling the ratios, the compliance with the rules of conduct and with the internal procedures.
His efficiency relies mainly on the quality of the cooperation with the stakeholders of the company.