COMPLIANCE / Compliance vs Legal

Excerpt from session:

Still could be heard: „My organization does not need Compliance function, as we rely on our well-established Legal Department! “. Why separate positions? Where Legal ends and Compliance begins?

Although implementing legal requirements into company operating procedures is in the root of both functions, Legal and Compliance function are not the same. They have different objectives, risk management approaches, decision-making principles and, after all, the different scope of activities.

Regardless of where the Compliance function is positioned in the company, it should be independent, autonomous, resourced and empowered. If an appointed person has some other responsibilities, it should not be in the conflict of interest with its other responsibilities. This is also the key to cooperation between Compliance and Legal function, regardless if it is a separate department or within Legal or some other department.

Therefore, there is no end of Legal and beginning of Compliance accountability in the company but continuous cooperation from each function position. However, if in conflict, who decides at the end? Those are company goals, integrity and values.

Main takeaways:

  • Differences between Legal and Compliance – approaches and objectives
  • Compliance – autonomy and partnership with Legal function in the organization