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Compliance Management Reporting on legal and regulatory compliance 15 April 2015
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Contact:
► Rahul Lovell; Partner; [email protected]
► Jignesh Thakkar; Partner; [email protected]
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Business challenge
Multiple laws to comply with: ► Several changing from state to state
► Frequent changes in law
Multiple lines of business: ► Multiple regulators and industry guidelines
► Constant alignment with changing regulatory
policies in specific sectors
Geographically spread operations: ► Operations across multiple locations
► Attrition and growth
► Supporting documentation
Companies Act 2013
Section 134 (5d) = Directors’
responsibility statement
Directors are to devise proper
systems to ensure compliance
with the provisions of all
applicable laws and ensure that
these systems are adequate
and operate effectively
Clause 49 (II/D/3)
A Board is to periodically
review the compliance reports
of all laws applicable to a
company, and prepared by it as
well as the steps taken by it to
rectify instances of non-
compliance..
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Key query: simple framework that keeps us out of trouble
Addressing the challenge What are leading companies expecting?
► People must “know what they need to comply with.”
► “Compliance owners” must be proactively informed before
compliances fall due
► They must be able to see health of compliance at any given point
in time across entities and locations.
► Ability to hold people accountable for:
► Non-compliance
► Timely response to show-cause notices and litigation
► Timely closure of tax assessments
► Document & publish our positions under different laws
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EY
Delineation of compliance
policy and framework
Preparation of
detailed checklist
including compliance
ownership
► Positions /Stand
on law
► Alignment with
process and
policy
Automation of
reporting and
monitoring through
EY’s Compliance
Manager tool
Provision of legal updates
and quarterly reviews on
compliance status
Compliance
health
check /
basline
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3 4
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Meeting expectations How does EY support companies on compliance management?
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Implementing a compliance management program (What does it take?)
Policy Process
Inventorying your
legal obligations 1
Segregating these
into two categories 2
Category B
Licenses, registration,
statutory records, displays,
Returns and payments
Category A
Conditions of work,
infrastructure, procedures
and statutory records
Build these into
your policies and
processes.
3
There are some
procedures I want to
certify?
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Compiled
checklists
uploaded on
EY’s
compliance
tool.
Scheduling of
compliance
on due date
using EY’s
Compliance
Manager.
Allocate
tasks, send
reminders,
and
customize
escalation.
Review of
results of self-
assessment
and updates by
users.
Monitoring of
compliance
status and
publication of
results for the
CFO’s office.
Ascertain
users update
status and
upload proof of
compliance.
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9
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Dashboard
Review
Compliance
Manager
Implementing a compliance management program (What does it take)
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EY’s USP – our Compliance Manager tool
What this means for you 1. The tool can be easily integrated into your workflow engine.
2. Benefits for users:
► Tasks are pushed automatically into their outlook calendars.
► Rather than a simple yes/no response, separate workflows are
designed for events, licenses, reporting of the environment, etc.
3. As a function head, you can take action on the go–you do
not need your laptop to check the status and follow up
4. As an administrator
► Special features take care of typical pain points-following up on
defaulters, changing ownership of compliance at the click of a
button, delegation etc.
► Changes in legislation are updated as a patch file .
5. Ongoing support and development of products
6. Seamless interplay across other GRC elements (such as
controls and IA) for end-users and function heads
Key features Technology –
MS sharepoint
Separate modules:
1. Licenses and environment
compliance
2. Follow up
3. Compliance reviews
Mobility-APP
1. Use of APP to update,
monitor and follow up
2. Supports IOS and Android
Integrated with EY’s GRC
suite
Additional modules available on
litigation,contract and controls
Ownership and maintenance
1. Owned by EY
2. In-house development and
maintenance team
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► Focused on business performance by aligning
business processes to critical compliance
requirements
► Integrated global approach
► End-to-end solution from diagnosis to execution
► Customization of services based on local
relevance
► Access to leading subject matter experts on
Employment Law, Immigration and Payroll Tax
EY’s advantage
► Total of 23 countries
covered
► All countries
completed in three
quarters
Countries covered:
Canada, Brazil, Mexico, Australia,
Singapore, China, Japan, Hong Kong,
Malaysia, New Zealand, the Philippines,
the UAE, Russia, the Czech Republic,
Mauritius, Spain, Poland , the United
Kingdom, Switzerland, Germany,
Belgium, France and the Netherlands
► Identification of applicable requirement for
compliance across all markets specific to
immigration, employment and payroll-related laws
► In-depth analysis of current business and
compliance processes to identify gaps, based
on review of data, evidence and discussions.
► Building a mapping structure that is customized
to every market to suit its local needs
► Setting up of the PMO for centralized
coordination
EY’s role
Case study 1–a global IT company
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► 98% of compliance assessed by the second month of implementation
► Compliance reports presented to Board of Directors by the Compliance Manager
Key accomplishments
No. of plants:
No. of branches:
No. of CFAs:
About the company
► No extra FTE required by organization to sustain
its compliance program
► Client able to extend the framework across three
locations after the initial launch of the product
► Covered an extra 1,600 compliances which
were not covered in organization's prior
checklists
EY’s advantage
4
63
3
191 No. of Acts/Provisions
No. of users/approvers:
No. of compliances
No. of compliances
mapped per user
30
2,100
40-50
Compliance stats
► Content prepared and reviewed by legal
experts every two months
► Creation of policy and framework–1 month
► Deployment and training –1 month
► Hand holding support –3 months
Our role
Case study 2–A chemicals company
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Case study 3–a large consumer durables company
Engagement description: assessing readiness of compliance
Review of compliance Team size: >35 Duration–6 weeks
► Multi-disciplinary team across SLs–specialists from Tax , CcaSS, risk and our legal team
► India selected as pilot for global roll out
► Locations: corporate offices, two plants, regional offices, warehouses and service centers
Impact:
1. What are the key regulatory requirements of
your company?
2. How do its processes and policies address
these requirements?
3. How should the company address
requirements as part of its business?
1. Creation of comprehensive library of
regulation and controls
2. Examination of positions taken by company
3. Identification of gaps and benchmarking
these with the practices of leading companies
4. Creation of a road-map to embed compliance
in business as including expansion and new
product launches
Issues addressed:
Thanks
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