Compliance plan

Compliance management is designed to minimise risk to a licensee’s operations, including the risk of non-compliance with its obligations under the Corporations Act and FSR licence conditions.

A compliance plan sets out the elements for establishing, implementing and managing an effective and measurable compliance program appropriate to the size and complexity of the business.

The plan should generally accord with Australian Standard 3806 -2006 - a compliance program aimed at helping companies achieve effective management of their compliance responsibilities.

An effective compliance program, the performance of which can be monitored and measured must:

  • Aim to prevent, identify, and respond to breaches of laws, regulations, codes or organisational standards;
  • Promote a culture of compliance within the organisation;
  • Assist the organisation in remaining a good corporate citizen.

The plan sets out the essential structural, operational and maintenance elements of a compliance program.

Structural Elements include:

  • Compliance Policy
  • Resources
  • Record Keeping
  • Continuous Improvement
  • Behavioural Content

Operational Elements include:

  • Management Responsibility
  • Identification and Rectification of Compliance Issues
  • Operating Procedures for Compliance
  • Implementation
  • Complaints Handling System
  • Reporting

Maintenance Elements include:

  • Commitment
  • Education and Training
  • Visibility and Communication
  • Monitoring and Assessment
  • Liaison

The key challenge in a successful compliance plan is embedding a compliance culture throughout the whole of the organisation. This involves:

  • Developing a clear and consistent communication process at all levels that identifies compliance as an integral part of expected standards.
  • Integrating compliance-related key performance indicators in job descriptions.
  • Developing a team environment where compliance is seen as a collaborative effort.

A compliance program must not be allowed to run in isolation of other management activities, or invariably the program would be viewed as a huge cost item and an impediment, rather than an opportunity to implement good business practice.