Background
The compliance function is a crucial function within firms, responsible for identifying, assessing, monitoring and reporting on the firms' compliance risk.
MiFID II requires firms to implement a series of systems and controls (appropriate to the nature, scale and complexity of their business as well as the range of investment services and activities undertaken in the course of that business) aimed at securing a robust governance framework, with a clear organisational structure and lines of responsibility, and effective risk management and compliance processes. This includes policies and procedures to ensure regulatory compliance and the establishment of a permanent, independent and effective compliance function.
Article 16(2) of MiFID II and Article 22 of the MiFID II Delegated Regulation (mainly but other provisions also apply) set out the regulatory provisions for the compliance function of firms. The proposals for guidelines in this area are aimed at helping firms to incr
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