Knowledge Base
Establish and maintain an independent compliance function to enforce ethical principles
Which of the following criteria is NOT a cumulative criterion for ensuring the independence of the compliance function according to Article 321-32 of the AMF General Regulation?
The four cumulative criteria for independence are: sufficient authority, adequate resources, proven expertise, and unlimited access to information. Proximity to operational teams is not a criterion required by the AMF.
Which document specifies the requirements for the RCCI to obtain their professional card?
AMF Instruction DOC-2008-03 specifies the requirements for obtaining the RCCI professional card, including a one-hour oral examination before a panel organised twice a year.
What is the first step in establishing an independent compliance function according to the AMF?
The first step is the appointment of a Compliance and Internal Control Officer (RCCI), as required by the AMF. This appointment is essential as it constitutes the cornerstone of the compliance architecture. The RCCI must obtain a professional card issued by the AMF after an oral examination, which ensures their technical competence and legitimacy.
What is the consequence if the budget allocated to the compliance function is significantly reduced?
According to AMF recommendations, any significant budget reduction must be the subject of a written justified report submitted to the governing bodies. This ensures that resources remain proportionate to identified risks.
The RCCI may report hierarchically to a director who performs operational activities in a portfolio management company.
According to AMF Position DOC-2014-06, the RCCI must report to a director who does not perform operational activities to ensure their independence. This reporting line takes precedence over functional links with the group business line in the case of a company belonging to a group.
Persons participating in the compliance function may be involved in the execution of the services they oversee.
According to AMF requirements, persons participating in the compliance function must under no circumstances be involved in the execution of the services and activities they oversee. This ensures their objectivity and independence.
Duration of the oral examination for the RCCI professional card
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The oral examination to obtain the RCCI professional card lasts one hour and is organised twice a year by the AMF. This requirement is specified in AMF Instruction DOC-2008-03.