[IT and compliance in finance service factor]

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of Under the overall direction of the Executive Committee of the Securities Industry Association's (SIA's) Compliance and Legal Division, this white paper was developed by a working group comprised of members of the Division's Executive Committee, a member of the SIA's Self-Regulation and Supervisory Practices Committee and Gerald Baker, a consultant to the Division, in multiple meetings and discussions that took place during the first five months of this year. In addition to the significant time and effort supplied by our Division and its membership, we wish to acknowledge the valuable assistance provided by Wachtell, Lipton, Rosen & Katz, outside counsel for this matter.

Table of Contents

CHAPTER 1: INTRODUCTION6

Introduction6

CHAPTER 2: LITERATURE REVIEW9

CHAPTER 3: METHODOLOGY12

REFERENCES13

Chapter 1: Introduction

Introduction

Under the overall direction of the Executive Committee of the Securities Industry Association's (SIA's) Compliance and Legal Division, this white paper was developed by a working group comprised of members of the Division's Executive Committee, a member of the SIA's Self-Regulation and Supervisory Practices Committee and Gerald Baker, a consultant to the Division, in multiple meetings and discussions that took place during the first five months of this year. In addition to the significant time and effort supplied by our Division and its membership, we wish to acknowledge the valuable assistance provided by Wachtell, Lipton, Rosen & Katz, outside counsel for this matter.

Securities firms have long made it a priority to adopt and implement robust compliance programs as part of their self-regulatory efforts and good business practices. The compliance department plays an important role in securities firms' compliance programs, primarily one of advice, monitoring, and training in support of business units and management. The purpose of this paper is to discuss the scope and limits of responsibilities of compliance departments in securities firms, and to clarify the distinction between a firm's general efforts designed to achieve compliance with applicable laws, rules, and regulations, and the specific functions of the compliance department in support of those goals, and management's responsibility to supervise, and the compliance department's role to monitor and surveil. This paper will also discuss recent regulatory initiatives impacting compliance programs and, particularly, the role of the compliance department.

Stand-alone compliance departments developed in the early 1960s. Prior to that time, legal departments generally had responsibility for compliance functions. Compliance departments developed out of securities firms' need to receive advice and support concerning the broad responsibility to supervise the day-to-day conduct of business unit activities and to have in place policies and procedures reasonably designed to ...