Reference no: EM132611097

You are a compliance consultant working at Multi Globe Sdn Bhd. (MG), a company operating in Malaysia in a regulated sector of your choice.

MG has been made aware that its regulator is about to undertake a supervisory visit and you have been tasked with ensuring that everything is in order, ready for the visit. In particular, MG has been in the process of making some organisational changes which have resulted in all function heads now being responsible for risk management in their own business areas. Therefore, you want to ensure that all those likely to be involved in the visit are clear about requirements and that appropriate preparations are in place to ensure that the visit proceeds as smoothly as possible.

As part of your preparations for the visit, you have completed a review of MG's most recent post-regulatory visit 'actions report'. While reviewing this report along with a copy of a subsequent Internal Audit Risk Log, you realise that in the detail of both documents the same point, concerning a lack of staff training, had been raised repeatedly. Despite this, the Executive Summary in both documents did not highlight the lack of training as a significant issue. Furthermore, you can't find any reference to the issue in the board meeting minutes that detailed the board's discussions about the previous regulatory visit.

The issues identified in the previous post-regulatory visit report and Internal Audit Risk Log specifically relate to timing, regularity and content of training on conduct of business activities. From the documentation and records you have been able to review, there is an apparent lack of clarity as to what action has been taken to address these matters.

In order to address these issues, you schedule a meeting with the executive board to discuss your findings and planned actions ahead of the upcoming regulatory visit.

Prepare a briefing paper to act as the basis of discussions during your forthcoming meeting with the board. In this, you should:

Question a) provide a brief summary of the proposed regulatory visit, highlighting those whom it is likely the regulator will wish to interview and why, identifying and apportioning key pre-visit tasks and responsibilities

Question b) provide an overview of your findings in relation to the staff training issue, highlighting the risks arising from this and setting out proposals to address these

Question c) identify potential opportunities and challenges arising from the visit, with a rationale for each, plus a clear indication of how these could be managed.