Executive summary . VII About the authors . XI Acknowledgements . XIII Part One: Taking on the new compliance officer roles Chapter 1: The requirement to have a COLP and COFA . 3 The background to the roles . 3 Who may undertake these roles? . 4 What do the roles entail? . 5 Chapter 2: Appointing the COLP and COFA .
9 Who is likely to be suitable? . 9 Skills, knowledge, and experience . 9 The time factor and other considerations . 10 The COFA role - Specific considerations . 10 COLP and COFA - The same person? . 11 Buying in a COLP and/or COFA . 12 The COLP and COFA must be ''designated'' as such and ''consent'' . 12 Getting the COLP and COFA approved .
12 The approval process . 13 Do the COLP and COFA need job descriptions? . 14 Objective setting . 15 Chapter 3: Working with your regulator . 17 Regulatory objectives and a changed approach to regulation . 17 How the SRA will identify and classify risk . 18 Information collection to assess risk . 20 How the information will be used .
22 What will the SRA expect of firms and their COLPs and COFAs? . 24 What can the SRA do to the COLP and COFA when things do go wrong? . 25 Chapter 4: Risk and how this might be managed . 27 Taking all ''reasonable steps'' to ensure compliance . 27 Identifying, monitoring and managing risks to compliance - What might the SRA expect? . 27 IV Developing risk management tools - Suggestions for a risk register . 28 How do you demonstrate that you have ''effective systems and controls in place''? . 29 The role of the department heads/managers in compliance .
30 The role of quality assurance schemes in supporting compliance . 30 COLP and COFA - The nuts and bolts of ensuring compliance . 31 Part Two: The COLP''s guide Chapter 5: An introduction to the COLP''s responsibilities . 39 The extent of the COLP''s responsibilities contrasted with the role of the firm''s managers . 39 Help! Where do we start with systems and controls? . 41 Chapter 6: The SRA Code of Conduct 2011 - Issues for the COLP . 45 Suggestions for systems and controls . 48 Chapter 7: Achieving Outcomes - How should this be monitored? .
59 Is your control appropriate? . 59 Keeping up to date . 60 Learning lessons from the Legal Ombudsman . 62 Are the systems being used? . 63 Training - Horses for courses . 63 The importance of file reviews to monitor compliance . 66 Other tools to monitor compliance . 68 Chapter 8: Identifying, recording, and reporting non-compliance .
71 How will the COLP know what they need to know? . 73 Record-keeping . 74 Identifying material breaches - Where to start . 76 The role of the management team in dealing with non-compliance . 79 Common breaches . 80 Part Three: The COFA''s guide Chapter 9: An introduction to the COFA''s responsibilities . 85 Base position - What skill sets are needed? . 85 Chapter 10: The importance of an in-depth knowledge of the SRA Accounts Rules 2011 .
87 What is in the SRA Accounts Rules 2011? . 88 What''s changed? . 93 Chapter 11: Implementing suitable systems and procedures . 99 General notes in Appendix 3 . 100 Receipt of client money . 100 Contents COLP and COFA: Compliance in Practice V Payments from client account . 101 The overall control of client accounts . 101 Chapter 12: Outcomes-focused flexibility in the SRA Accounts Rules 2011 .
103 What should be in the firm''s interest policy? . 105 File and ledger reviews . 106 Chapter 13: Identifying, recording and reporting non-compliance with the Accounts Rules . 109 Common breaches of the SRA Accounts Rules . 109 Areas of concern . 109 Recording non-compliance and assessing material breaches . 110 What is a material breach? . 111 What would you do? Worked examples .
112 Chapter 14: The COFA''s wider relationships and responsibilities . 117 Working with others . 117 The role of the reporting accountant and the accountant''s report . 117 The reporting accountant''s perspective on the role of the COFA . 118 The bigger picture - The financial health of the firm and individuals within it . 121 Latest pointers from the SRA . 123 Final thoughts on the role of the COFA . 125 Part Four: Personal perspectives Chapter 15: Personal considerations for the COLP and COFA .
129 A path finding role . 129 The relationship of the COLP and COFA with the partners/management team . 129 Learning from the MLRO experience . 136 Can lessons be learned from the money laundering reporting officer role? . 136 Who carries the can when things go wrong? . 138 An FSA compliance officer''s tale . 139 Insurance and indemnity . 140 What sanctions can the SRA exercise against COLPs and COFAs? .
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