We work consistently to identify and manage risk as it applies to our business and industry. We manage risk by a system of internal controls that measure risks, as well as the likelihood and consequences of breaches, which includes insurance.
In addition to identifying and managing risks in-house, our business is subject to external audit by NSW Fair Trading, which supports us in our duty to comply with relevant laws and regulations, and procedures.
NSW Fair Trading has the authority to supervise compliance and apply sanctions in response to any violation.
Functions of compliance
In terms of our business, compliance serves five key functions; these are to:
1. Identify the risks we may face and seek advice to reduce or eliminate the risks (prevention)
2. Design controls to protect us from those risks (prevention)
3. Monitor and report of the effectiveness of those controls in managing our exposure to risks (monitoring and detection)
4. Resolve difficulties (resolution)
5. Advise on rules and controls (advisory)
Functions of regulation
In terms of our business, regulations serves five core (financial) functions; there are to:
1. Protect vendors and purchasers
2. Ensure the market is fair, efficient and transparent
3. Reduce systemic risk
4. Reduce financial crime
5. Maintain client confidence
What activities are regulated?
2. Client communications
3. Client agreements
4. Conflicts of interest
5. Client understanding and suitability
6. Client dealings
7. Client due diligence
8. Client assets and money held in statutory trust accounts
9. Breaches and errors
For more information and advice, visit NSW Fair Trading.