Legal and Management Controls
Updated 13 March 2021
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Legal and management controls works closely with compliance to ensure that the firm has the appropriate control infrastructure in place to mitigate the risk that the firm violates the law or regulation in any territory in which it operates.
Legal
One part of legal and management controls is the giving of legal advice internally within the firm. This might be with respect to any actual or anticipated litigation that may arise, or when considering a move that may be in a new territory or legally contentious.
The task is very complicated as the rules are different across countries, and some transactions will involve consideration for the law of many different territories simultaneously.
Management Controls
By managing the internal control infrastructure of the firm, they mitigate the risk that the firm does not comply with laws and regulation the risk in the territories in which it operates. The role is an important one as it reduces the risk that the firm receives serious penalties and reprimands from governments which may affect both its business and reputation.