A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee.
What is the correct next course of action?
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A. B. C. D.A
The correct next course of action for the compliance officer in this scenario would be C. Get as much information as possible from the source so that potential risks can be researched and a report prepared and presented to the head of marketing.
Here's a detailed explanation of why this answer is the most appropriate:
Option A, which suggests requesting the new product approval committee to include the compliance officer, is a proactive step to ensure compliance considerations are taken into account during the approval process. However, it doesn't address the immediate need for information or potential risks associated with the new financial service. While involving the compliance officer in the committee is important in the long term, it may not provide immediate insights into potential risks.
Option B, which suggests going to the board of directors to shut down the new service immediately due to lack of communication, is an extreme and premature action. Without understanding the details and risks associated with the service, it is not appropriate to recommend shutting it down abruptly. It is important to gather information and conduct a thorough risk assessment before escalating the matter to such a high level.
Option D, which suggests starting initial research into potential risks but waiting until notified that the service has been approved by the committee before initiating extensive research, is a relatively passive approach. It acknowledges the need for research but delays extensive efforts until approval is granted. However, compliance officers should be proactive in identifying and assessing potential risks as early as possible, rather than waiting for formal approval. This option may result in missed opportunities to address compliance issues or identify risks in a timely manner.
Therefore, option C is the most appropriate next course of action. By gathering as much information as possible from the IT source, the compliance officer can begin researching potential risks associated with the new financial service. This allows for a comprehensive understanding of the service and its potential compliance implications. Subsequently, the compliance officer can prepare a report outlining the identified risks and present it to the head of marketing. This proactive approach ensures that compliance considerations are addressed early on and enables informed decision-making by the relevant stakeholders.