Compliance Management
Reporting on legal and regulatory compliance
15 April 2015
Contact:
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Rahul Lovell; Partner; rahul.lovell@in.ey.com
Jignesh Thakkar; Partner; jignesh.thakkar@in.ey.com
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Business challenge
Companies Act 2013
Multiple laws to comply with:
Section 134 (5d) = Directors’
responsibility statement
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Directors are to devise proper
systems to ensure compliance
with the provisions of all
applicable laws and ensure that
these systems are adequate
and operate effectively
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Multiple lines of business:
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Clause 49 (II/D/3)
A Board is to periodically
review the compliance reports
of all laws applicable to a
company, and prepared by it as
well as the steps taken by it to
rectify instances of noncompliance..
Multiple regulators and industry guidelines
Constant alignment with changing regulatory
policies in specific sectors
Geographically spread operations:
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Several changing from state to state
Frequent changes in law
Operations across multiple locations
Attrition and growth
Supporting documentation
Addressing the challenge
What are leading companies expecting?
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People must “know what they need to comply with.”
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“Compliance owners” must be proactively informed before
compliances fall due
They must be able to see health of compliance at any given point
in time across entities and locations.
Ability to hold people accountable for:
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Non-compliance
Timely response to show-cause notices and litigation
Timely closure of tax assessments
Document & publish our positions under different laws
Key query: simple framework that keeps us out of trouble
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Meeting expectations
How does EY support companies on compliance management?
1
Delineation of compliance
policy and framework
Provision of legal updates
and quarterly reviews on
compliance status
5
2
Compliance
health
check /
basline
EY
4
Automation of
reporting and
monitoring through
EY’s Compliance
Manager tool
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3
Preparation of
detailed checklist
including compliance
ownership
► Positions /Stand
on law
► Alignment with
process and
policy
Implementing a compliance management
program (What does it take?)
1
Inventorying your
legal obligations
2
Segregating these
into two categories
Category A
Category B
Conditions of work,
infrastructure, procedures
and statutory records
3
Build these into
your policies and
processes.
Policy
Process
There are some
procedures I want to
certify?
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Licenses, registration,
statutory records, displays,
Returns and payments
Implementing a compliance management
program (What does it take)
4
5
6
Compiled
checklists
uploaded on
EY’s
compliance
tool.

Allocate
tasks, send
reminders,
and
customize
escalation.
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Review of
results of selfassessment
and updates by
users.
8
Monitoring of
compliance
status and
publication of
results for the
CFO’s office.
7
Ascertain
users update
status and
upload proof of
compliance.
Review

Compliance
Manager
Scheduling of
compliance
on due date
using EY’s
Compliance
Manager.
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Dashboard

EY’s USP – our Compliance Manager tool
Key features
Technology –
MS sharepoint
What this means for you
1. The tool can be easily integrated into your workflow engine.
Separate modules:
1. Licenses and environment
compliance
2. Follow up
3. Compliance reviews
2. Benefits for users:
Mobility-APP
1. Use of APP to update,
monitor and follow up
2. Supports IOS and Android
3. As a function head, you can take action on the go–you do
not need your laptop to check the status and follow up
Integrated with EY’s GRC
suite
Additional modules available on
litigation,contract and controls
Ownership and maintenance
1. Owned by EY
2. In-house development and
maintenance team
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Tasks are pushed automatically into their outlook calendars.
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Rather than a simple yes/no response, separate workflows are
designed for events, licenses, reporting of the environment, etc.
4. As an administrator
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Special features take care of typical pain points-following up on
defaulters, changing ownership of compliance at the click of a
button, delegation etc.
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Changes in legislation are updated as a patch file .
5. Ongoing support and development of products
6. Seamless interplay across other GRC elements (such as
controls and IA) for end-users and function heads
Case study 1–a global IT company
Countries covered:
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Total of 23 countries
covered
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All countries
completed in three
quarters
EY’s role
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Identification of applicable requirement for
compliance across all markets specific to
immigration, employment and payroll-related laws
In-depth analysis of current business and
compliance processes to identify gaps, based
on review of data, evidence and discussions.
Building a mapping structure that is customized
to every market to suit its local needs
Setting up of the PMO for centralized
coordination
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Canada, Brazil, Mexico, Australia,
Singapore, China, Japan, Hong Kong,
Malaysia, New Zealand, the Philippines,
the UAE, Russia, the Czech Republic,
Mauritius, Spain, Poland , the United
Kingdom, Switzerland, Germany,
Belgium, France and the Netherlands
EY’s advantage
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Focused on business performance by aligning
business processes to critical compliance
requirements
Integrated global approach
End-to-end solution from diagnosis to execution
Customization of services based on local
relevance
Access to leading subject matter experts on
Employment Law, Immigration and Payroll Tax
Case study 2–A chemicals company
Key accomplishments
98% of compliance assessed by the second month of implementation
► Compliance reports presented to Board of Directors by the Compliance Manager
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About the company
Our role
No. of plants:
3
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Content prepared and reviewed by legal
experts every two months
No. of branches:
4
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Creation of policy and framework–1 month
No. of CFAs:
63
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Deployment and training –1 month
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Hand holding support –3 months
EY’s advantage
Compliance stats
No. of Acts/Provisions
191
No. of users/approvers:
30
No. of compliances
2,100
No. of compliances
mapped per user
40-50
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No extra FTE required by organization to sustain
its compliance program
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Client able to extend the framework across three
locations after the initial launch of the product
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Covered an extra 1,600 compliances which
were not covered in organization's prior
checklists
Case study 3–a large consumer durables
company
Engagement description: assessing readiness of compliance
Review of compliance
Team size: >35
Duration–6 weeks
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Multi-disciplinary team across SLs–specialists from Tax , CcaSS, risk and our legal team
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India selected as pilot for global roll out
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Locations: corporate offices, two plants, regional offices, warehouses and service centers
Issues addressed:
Impact:
1. What are the key regulatory requirements of
your company?
1. Creation of comprehensive library of
regulation and controls
2. How do its processes and policies address
these requirements?
2. Examination of positions taken by company
3. How should the company address
requirements as part of its business?
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3. Identification of gaps and benchmarking
these with the practices of leading companies
4. Creation of a road-map to embed compliance
in business as including expansion and new
product launches
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