ASIC expects a compliance framework that systematically identifies regulatory obligations and ensures the business can meet them on an ongoing basis. In practical terms, this means a structured system supported by documented policies, clearly defined responsibilities and effective monitoring processes.
A typical framework includes an obligations register, supervision arrangements, compliance monitoring programs, breach and incident reporting procedures, staff training and governance reporting to senior management.
ASIC expects these systems to operate in practice rather than exist only as documentation. Regulators often look for evidence that monitoring occurs regularly, issues are escalated promptly and responsible managers actively oversee compliance risks.
The framework should also evolve as the business changes so that controls remain appropriate for the nature, scale and complexity of the licensee’s operations.