Bushiness Law Assignment 2022

Running head: BUSINESS LAW ASSIGNMENT
QUESTTION-ANWER ON BUSINESS LAW
Name of the Student
Name of the University
Authors Note

BUSINESS LAW ASSIGNMENT1
Answer-1
I am a member staff of a regulated firm based on the financial sector (bank) in UK. Our
organization experiencing effective growth and presently we are offering new financial products
(investment schemes, retirement plan, and education plan for children) and services to various
markets.
Short paper for circulating at meeting
 Role, responsibilities and activities of the compliance function
Corporate compliance guarantees that the rules, legislation, policies and ethical
guidelines are adhered by the company and its staffs. Compliance function strives to achieve key
regulatory priorities for protecting investors and maintaining equal, effective and openness of
markets. It also helps in reducing system risk and crime related to finance. These goals seek to
foster customer trust in the financial sector. Organizations related to financial services are also
subject to monitoring business rules which regulate advertisements, interaction with consumers,
conflicts of interest, awareness and appropriateness of customers, consumer transactions,
consumer properties, money as well as breakdowns of flaws and mistakes1.
Within an organization, different roles have been played by a compliance team which
includes, consultant, monitor, communicator, educator, and facilitator. A compliance team is
generally responsible for 5 areas, such as identifying, preventing, tracking, recognizing,
addressing and advising. It defines and offers guidance on preventing or managing threats faced
by an organization. This carries out measures to eliminate this risk for the company. Compliance
mainly observes and informs on the efficiency of controls in organizational risk management. It
1 Haugh, Todd. "The trouble with corporate compliance programs." (2017) MIT Sloan Management Review 59.1: 55

BUSINESS LAW ASSIGNMENT2
also addresses concerns related to consistency and advises the organization related to rules and
controls. Compliance function approve and supervise compliance rules through collection,
exchange and regulation of information through the imposition of appropriate penalties. The
design, variety, difficulty, scope, volume, and size of a corporation and operations are those vital
factors which are used to assess risk in an organization2.
 Roles of directors, senior management, staff and business unit to ensure compliance
The directors and senior managers are considered to be the heart of the organization. An
active role has been played by them to ensure the compliance of the organization. Financial
services executives are also subject to the UK’s financial services regulators’ clear and
strengthened responsibilities. Section 171 to 177 of the UK Companies Act 2006 deal with the
duties of the directors within an organization3. Within an organization, several duties and
responsibilities are performed by the senior management and directors4. The duties and
responsibilities are discussed below:
They must act in good faith and for the best interest of the organization and its
shareholders;
 Must perform their responsibilities with due diligence and reasonable care;
 Must judge self-sufficiently;
 Must practice their powers for an appropriate reason;
 Must avoid those situations which may create clashes; and
2 Thimm, Heiko. "A continuous risk estimation approach for corporate environmental compliance
management." 2015 IEEE 15th International Conference on Environment and Electrical Engineering (EEEIC).
(IEEE, 2015).
3 Chiu, Iris HY. "Regulatory Duties for Directors in the Financial Services Sector and Directors’ Duties in Company
Law-Bifurcation and Interfaces." (2016) Journal of Business Law.
4 Haugh, Todd. "The Power Few of Corporate Compliance." Ga. L. Rev. 53 (2018): 129.

BUSINESS LAW ASSIGNMENT3
 Must abstain from making unrevealed revenue.
For instance, the senior managers and directors must act diligently in providing
information which is related to business and must be known to the others.
Apart from directors and senior management of the company, every staff is also
responsible to ensure compliance within the organization. An employee is responsible, according
to his specific job title and responsibilities, for the primary responsibility for the compliance or
risk management. A conscientious employee must ensure that he or she is familiar with policies
and procedures, complete all necessary training tasks, and obey the codes of conduct and code of
morals.
Similarly, business unit also plays a vital role in ensuring compliance, such as the
Compliance role of the business unit shall execute all functions of compliance program assigned
by the Compliance Officer and the CEO of the business unit. The position shall be referred
immediately to the CEO of the business unit and forwarded to the company enforcement officer
with a pointed line report5.
 Benefit of the compliance function within an organization
The department of compliance ensures that an organization complies with external laws
and internal controls. Compliance departments work against the key regulative goals to
safeguard investors and ensure equity, quality and openness of markets in the financial services
sector. They also aim at raising the disruption of the program and financial crime. These aims are
intended to encourage customer trust in the financial system. Financial services companies are
also subject to regulatory business rules on advertisements, consumer interactions, conflicts of
5 Hodges, Christopher. Law and corporate behaviour: Integrating theories of regulation, enforcement, compliance
and ethics. (Bloomsbury Publishing, 2015).