The total word count for this assignment should be between 2,000 and 2,500 words. This includes all in-text references and appendices but excludes any footnotes, reference page or contents page. N.B. Appendices should only be used in exceptional circumstances and should consist of only brief extracts or tables. 8. The number of words per part of the question should be in proportion to the number of marks allocated. 9. Penalties will be applied for excessive overall word count. All parts of the questions can be answered in relation to a jurisdiction with which you are familiar. The name of the jurisdiction you have selected should be clearly stated in your answer. Answer all parts of the questions. Question 1 You are a member of the regulatory compliance team at International Global (IG), a firm regulated in a jurisdiction and sector of your choice. At IG there is no separate financial crime prevention function and therefore responsibilities in this area fall within the scope of the regulatory compliance team. Though your role focuses predominantly on policy development activities within the compliance team, you also work closely with one of the senior compliance managers on a number of current projects. One of these relates to the imminent restructuring of the regulatory compliance team to meet the revised needs of IG, which has undergone a period of upheaval following a recent business acquisition and changes in personnel. As a consequence, resources are being reallocated to certain business areas within IG and reduced in others, with a substantial increase in staffing in some areas alongside reductions elsewhere. This significant level of change within the firm has been identified as a potential source of risk for IG, both in the immediate and the medium term. The regulatory compliance team, together with those working in a dedicated risk management team, have been asked to review their own activities and approach to ensure that these take account of risks arising from the recent changes within the firm. Taking into account all that has been said in the above scenario and demonstrating clear links to this in your answer: a) define the purpose of the compliance function both within a regulated firm generally and within your chosen firm specifically. b) explain what the regulatory compliance functions risk management responsibilities are c) outline the types of activity that could be implemented to assist in the management of the risks arising as suggested in the scenario, making it clear how the activities you suggest will help mitigate the risks. Provide relevant examples to support your views and the purpose of the project meeting. (40 marks) Question 2 Worldwide International (WI), a firm regulated in a jurisdiction and sector of your choice, has recently appointed an experienced new regulatory compliance officer, Mr Bond. During the first week in his new role, Mr Bond examined a report commissioned by his predecessor, which had identified weaknesses relating to aspects of the existing compliance arrangements within WI. Among a number of more general points, the report specifically highlighted two concerns: • that there is no written company compliance policy in place, and • that very little compliance reporting occurs within the firm. The report covered the first quarter of 2020, but no action has yet been taken in relation to these findings. Mr Bond is keen that the findings of this report, together with the recommendations for improvement provided within it, should now be the focus of his attention. A meeting with the senior management of WI is to take place to address the findings of the report and its recommendations for action. You are an experienced member of the regulatory compliance team at WI and have been asked to attend the meeting, assisting Mr Bond. In the first instance, he has asked that you prepare a guidance paper for distribution at the meeting. Your paper will support a detailed project brief, focused on the specific actions required to address the issues identified in the report, which Mr Bond will be preparing separately. With reference to the above scenario, produce the required guidance paper. In this you should: • describe the purpose of compliance systems and controls within a regulated firm and explain why it is important to review these periodically • explain why a written compliance policy would be valuable and what subjects should be set out within it • summarise how a compliance policy should be implemented within the firm and why the approach to implementation is important • illustrate why reporting on compliance with the firm’s operational procedures is important, and the types of subject matter that such reports should cover.