Understanding new regulatory obligations can be a daunting task for any organization. It is important to be aware of all applicable laws and regulations, both federal, state, local, and internal company-instituted rules. Ignorance of the law is no excuse, so it is essential to ensure that everyone in authority is aware of the law and understands it. This is the role of compliance, to make sure people know the rules beforehand and help to ensure that they continuously follow them.
To understand new regulatory obligations, there are a few key steps that organizations should take.
Research
The first step is to research the applicable laws and regulations. This includes researching federal, state, local, and internal company-instituted rules. It is important to be aware of all potentially applicable laws and regulations. This can be a time-consuming process, as even experienced and sophisticated lawyers sometimes have a difficult time deciphering the cryptic ‘‘legalese’’ that passes for statutory language.
Understand
The second step is to understand the laws and regulations. It is important to understand the implications of the laws and regulations, and how they will affect the organization. This includes understanding the potential for changes to regulations, changes in the regulatory environment, and different regulatory requirements in different territories.
Comply or Explain
The third step is to comply with the requirements or explain why it was not appropriate or necessary to comply i.e. why those requirements that prima facie apply do not apply to your specific business. Clearly, care is needed to ensure that you are on ‘solid ground’ in asserting that an obligation does not apply to you.
Corporate Governance Requirements
The fourth step is to be aware of corporate governance requirements. These requirements are placed on board members by legislation and by various codes of practice. Often, these corporate governance requirements are presented as detailed codes of practice. It is important to understand these requirements and ensure that they are followed.
Monitor
The fifth step is to monitor the laws and regulations. It is important to stay up to date with any changes to the laws and regulations, and to ensure that the organization is in compliance.
Conclusion
Understanding new regulatory obligations can be a daunting task for any organization. It is important to be aware of all applicable laws and regulations, both federal, state, local, and internal company-instituted rules. It is also important to understand the implications of the laws and regulations, and how they will affect the organization. It is essential to comply with the requirements or explain why it was not appropriate, necessary, or feasible to comply. It is also important to be aware of corporate governance requirements and ensure that they are followed. Finally, it is important to monitor the laws and regulations and stay up to date with any changes.
Contact us to talk about the solutions we offer to integrate the above into your business.
