Regulatory Mapping, CMP and P&Ps

Regulatory Mapping, CMP and P&Ps

There is a range of regulations and legislative provisions affecting Jersey, that a business must comply with. Regulatory mapping, compliance monitoring, and implementation of policies and procedures are important to reduce regulatory and reputational risk and to avoid fines for non-compliance.

Policies and Procedures

The purpose of policies and procedures (P&Ps) is to help ensure a high level of client service, ensuring that the regulatory requirements are adhered to and whilst simultaneously minimising the business risk.

A policy is a set of general guidelines that outlines how the business will tackle something. It should be a link between the vision, values, risk appetite and the day-to-day operations. A procedure sets out the action plan for carrying out the policy, essentially a step-by-step instruction for how to complete a task. This is the final step in the policyprocess and procedure implementation.

Which policies and procedures are required will depend on the type of business, what services are being provided, and the regulatory status of the business.

Regulatory Mapping

Regulatory changes occur frequently. Building an effective regulatory mapping process is part of a business’s compliance program and is the mechanism for being aware of regulatory changes. It is an integral part of a registered person’s risk management framework; specifically in relation to compliance risk.

Regulatory mapping refers to the process of reading and analysing the regulatory text (such as laws, regulations, regulatory statements etc.) to understand exactly which specific obligations apply to your business. Regulatory mapping can also be seen as the process of linking your obligations to the internal controls, policies and procedures.

Compliance Monitoring Programme

The Jersey Financial Services Commission (the “Commission“) considers Compliance Monitoring to be the assessment of a registered person’s adherence to applicable legislative and regulatory requirements and corresponding controls. With reference to the guidance notes issued by the Commission, it can occur throughout the business and need not be solely undertaken by the compliance function (e.g. the Compliance Officer, MLRO, MLCO, and staff who directly report into the individuals appointed to these Key Person positions). However, it should provide the Board with more robust assurance with regard to its management of Compliance Risk.

The cyclical process of compliance monitoring

The cyclical process of compliance monitoring consists of the following steps:

  1. identifying relevant legislative and regulatory requirements;
  2. identifying relevant controls (which would include the policies and procedures);
  3. conducting a risk assessment;
  4. producing and approving a CMP;
  5. undertaking the CMP testing;
  6. reporting; and
  7. overseeing remedial action

Further detail on the JFSC’s expectations regarding these steps is provided in their guidance notes .

Support for your business

A virtual assistant can assist your compliance officer with some of the administrative tasks relating to the Regulatory Mapping, CMP and P&Ps. This will free up your compliance team from tedious, administrative work and increase their focus on facilitating compliance, developing regulatory strategy, and proactively planning for regulatory change.

SubjectHow Virteffic can assist
Policies and Procedures Once you have identified which P&Ps your business require, you will need to identify who will prepare these.

Formulation
Virteffic can assist to draft the P&Ps in accordance with your requirement, gathering information, and conducting research. As part of the process, Virteffic will liaise with the appropriate stakeholders, and circulate the draft P&Ps for review, and update the same following receipt of any comments.

Implementation
Virteffic can also assist to co-ordinate the required board meetings (once the P&Ps are in agreed, final form), and present these to the board for their consideration before implementation.
Regulatory MappingMapping
The compliance officer of a business will monitor regulatory websites, newsfeeds and other sources to identify the latest regulatory updates, additions and changes that apply to your business. Virteffic can assist to conduct the mapping exercise once the regulatory text has been identified.

Gap Analysis
Following the completion of the regulatory mapping, a gap analysis will need to be conducted to ensure that your business has implemented the required P&Ps and has adequate controls in place to mitigate any risks. Virteffic can assist to cross-reference the P&Ps to the mapping schedule.
Compliance Monitoring ProgrammeEvaluation
The P&Ps should be evaluated to ensure they are aligned with the aim and requirements initially identified, following which they were prepared. The P&Ps should then be reviewed on a regular basis to ensure they continue to meet the requirements of your business, and regulatory requirements. Virteffic can assist to review your P&Ps, cross-reference these against the requirements, and assist with any updates required.

Reporting
An update should be provided to the Board to include a reporting on tests and findings. In addition, regular updates should be provided to the Board in regards to the status of the testing against the annual CMP plan and also with regards to the status for clearing any outstanding findings, and implementation of any enhanced controls (if required). Virteffic can assist to prepare the reports. Virteffic can also assist with organising the board meeting and preparing the minutes.

Background and Merits

I am Tess Price, the founder and virtual assistant of Virteffic Limited. I have a strong academic background and have worked +15 years in the fiduciary industry in Jersey.

My work experience in Jersey has given me deep technical expertise and extensive knowledge of local legislation and regulatory requirements. I am diligent and work with a high level of accuracy and attention to detail. My expertise is most noteworthy in minute writing, governance, policies & procedures, and in all aspects of company secretarial work. In my previous role, I drafted the policies, procedures, and checklists. I also have experience of assisting with CMP, regulatory mapping and GAP analysis.  For further background, I invite you to review my Bio and CV.

Find out more

You can visit the website to find out more. Get in Touch if you have any questions or want to book a free, no-obligation consultation to discuss the services available.

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