Chapter III Inspection of the Internal Control System
Section IV Compliance System
Article 25
The FSC may, after considering the size and business nature of an enterprise, order it to establish a unit in a direct reporting line to the board of directors or to the general manager, to be charged with the planning, management and execution of a compliance system.
The board of directors shall designate a member of the senior management as the chief compliance officer, to be responsible for overseeing compliance matters and submitting a report to the board of directors and to each and all supervisors at least semi-annually.
The information on the compliance officer described in the preceding paragraph shall be filed with the FSC for recordation, specifying the reason for the designation and annexing the minutes of the board of directors meeting, within five days from the date of passage by the board of directors.
Article 26
A unit responsible for legal and regulatory compliance shall carry out the following activities:
1. Establish clear and adequate systems of advocacy of laws and regulations, consultation, coordination, and communication.
2. Ensure that procedural and managerial bylaws are updated in a timely manner in response to applicable laws and regulations, so that operations are in compliance with all laws and regulations.
3. Formulate the content of and procedures for assessing compliance with laws and regulations and monitor the periodic self-assessment of the implementation thereof by each unit.
4. Administer adequate and proper legal training on laws and regulations to personnel of each unit.
5. Carry out such other activities as may be required by the FSC.
Self-assessment of compliance with laws and regulations shall be performed no less frequently than annually, with the results delivered to the compliance unit for future reference. The head of a unit shall designate a person responsible for performing self-assessment within that unit.
Working papers and materials in connection with the self-assessment under the preceding paragraph shall be preserved for no less than five years.
Article 27
An internal audit unit shall incorporate the implementation status of the compliance system into its audit of the business and management units.