NBFC-UL and NBFC-ML shall put in place a Board approved policy and a Compliance Function, including the appointment of a Chief Compliance Officer (CCO), based on the Framework given latest by April 1, 2023 and October 1, 2023, respectively.
Compliance Function shall ensure strict observance of all statutory and regulatory requirements for the NBFC, including standards of market conduct, managing conflict of interest, treating customers fairly and ensuring the suitability of customer service.
Responsibilities of Compliance Function
1. Assist the Board and the Senior Management in overseeing the implementation of Compliance Policy.
2 Play the central role in identifying the level of Compliance risk in the organisation.
3. Compliance testing shall be reported to the Senior Management.
4. Ensure compliance of regulatory/ supervisory directions given by RBI in both letter and spirit in a time-bound and sustainable manner.
5. Attend to compliance with directions from other regulators in cases where the activities of the entity are not limited to the regulation/supervision of RBI
6. The Compliance Department may also serve as a reference point for the staff from operational departments for seeking clarifications / interpretation of various regulatory and statutory guidelines.
For further: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12290&Mode=0
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