The Compliance Charter

The compliance charter expands the concepts within the mission statement and can be used to serve both as a promotional piece and a high level contract for services between the compliance department and the rest of the firm. Senior management should then endorse this charter so that everybody is aware of the role of the department and the services it provides. This will be key in future when additional resource or external consultancy is a recommended, in the event of disputes or requirements for material corrective action.

The Compliance Charter is set to define the purpose, standing, authority and responsibility of the Compliance Function within Firm, as well as the reporting lines, the responsibilities and accountability of the Compliance Director/Manager/SMF16.

There is no point in wording the compliance charter in regulator speak nor is there any need for people to have studied English language at University before reading your charter. There is always a tendency to use jargon, MBA speak etc. But you'll find if you use the “house” language option the charter will not only be understood better but staff are more likely to accept and recall it.