What does the legal compliance department of a securities company mean?

The development prospect of securities companies is still very good, because it seems that the demand for corporate financing is increasing, so the existence of the securities industry has a very positive role. However, the competition of securities companies is actually very fierce. In the market downturn, the compliance department needs to bear the corresponding responsibilities, but many people simply don't understand what the legal compliance department of the Securities Company Law means. What does the legal compliance department of a securities company mean? The Compliance Department is the functional department responsible for the supervision and inspection of compliance and law-abiding, the determination of the responsibility for credit operation approval and anti-money laundering, and undertakes the corresponding responsibilities with the Compliance Department of the Head Office. Compliance is the core risk management activity of the banking industry, and a sound and effective compliance risk management mechanism is the basis for implementing risk supervision. Commercial banks can construct compliance risk management mechanism from the following five aspects. 1. Establish active compliance awareness and overcome passive compliance psychology. Compliance is the basic internal demand of the stable operation of the banking industry and an important part of the banking culture. First, establish the concept that everyone is responsible for compliance, take the initiative to comply, and create value through compliance among bank employees, so that employees will think of the necessity of compliance risk review when they are in contact with every business, and advocate actively discovering and exposing hidden dangers or problems of compliance risks so as to make timely rectification. Second, the compliance culture is supported by a set of systems, methods and tools, which requires banks to strengthen the post-evaluation of rules and regulations. In view of the problems found, make appropriate improvements in business policies, behavior manuals, operating procedures, etc., avoid any similar violations, correct the violations that have occurred, and give necessary disciplinary actions to the relevant responsible persons. If the compliance risk is found but not reported, once it is verified by the internal audit department or external regulatory agency, the concealer will be punished more severely; Those who take the initiative to report problems or hidden dangers can be given a lighter punishment or even exempted or even rewarded according to the situation. Thirdly, the performance appraisal mechanism is an important part of cultivating compliance culture, which fully embodies the values of commercial banks in advocating compliance management and punishing violations. 2. Formulate compliance policies and set up compliance departments. Compliance Department is an independent functional department that supports and assists the senior management of banks to do a good job in compliance risk management. Front-line business departments are directly responsible for compliance, and senior management is the ultimate responsible person for compliance operation of the whole bank. To build a compliance risk management mechanism of commercial banks, it is necessary to set up a full-time compliance department, and ensure that the compliance department can find and investigate problems without interference, so that compliance personnel can participate in the process of bank organizational structure and business process reengineering in time, so that the principle of compliance according to law can be truly implemented in every link of business process and even every employee. At the same time, it is necessary to formulate and approve effective compliance policies that meet the characteristics of commercial banks, which is a programmatic document for bank compliance risk management; Accumulate experience through practice, explore the effective operation mechanism of managing compliance risk and the radical solution of managing operational risk. However, it must be made clear that the Compliance Department cannot be an excuse for all business departments and senior management of banks to shirk their responsibilities, and the Compliance Department cannot be a "scapegoat" for the accountability of senior management and other departments. 3. Establish a reporting supervision mechanism. In order to cultivate employees' awareness of operating and controlling compliance risks according to law, it is necessary to establish a reporting supervision mechanism, provide necessary channels and ways for employees to report violations and illegal acts, and establish an effective reporting protection and incentive mechanism. 4. Establish a risk assessment mechanism. It is necessary to establish and improve the risk identification and evaluation system as soon as possible, earnestly learn from international advanced experience, actively use modern scientific and technological means, establish and improve the monitoring, evaluation and early warning system covering all business risks, attach importance to early warning, and conscientiously implement the major breach registration and risk early warning system. 5. Establish a compliance risk management mechanism based on "process bank". It is necessary to completely break the "departmental bank" system that has been followed for many years in a stable and closed market environment and planned economy period, break the departmental risk management model of compartmentalization and fragmentation, effectively avoid the phenomenon of compartmentalization and mutual wrangling, establish a unified closed process centered on customer needs, and optimize and streamline business processes on the principle of serving customers well and controlling various risks including compliance risks. In fact, in China's company law, there is no specific detailed provision for the compliance department. Compliance is stipulated by borrowing the supervision system of some well-known banking departments in western countries. Generally speaking, the Compliance Department is mainly responsible for the steady operation of securities companies, and it is necessary to predict the credit operation and related legal risks in advance. At present, China's compliance-related regulatory system is gradually improving.