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TPA COMPLIANCE PROGRAM
What is a TPA compliance program?
An effective Trade Practices Act compliance program is a preventative mechanism for minimising the risk of breaching the law. It makes staff, from entry level to senior management, aware of their obligations and the company’s obligations and responsibilities under the Trade Practices Act. An effective compliance program reduces corporate risk.
There are two major elements that should be included in a compliance program. One is procedural compliance while the other is behavioural compliance. Compliance is a dynamic process and maintaining the compliance program is necessary to keep it relevant and effective.
Australian Standard 3806 provides a framework for an effective compliance program, the performance of which can be monitored and assessed. It sets out essential elements for establishing, implementing and maintaining an effective compliance program within an organisation. It is not intended to take precedence over other management systems such as ISO9000.
A compliance program is an important element in the corporate governance and due diligence of any organisation and should;
- Aim to prevent, and where necessary, identify and respond to breaches of the laws and regulations within the organisation
- Promote a culture of compliance within the organisation
- Assist the organisation to remain or become a ‘good corporate citizen’
We provide guidance and assistance in developing and implementing cost effective Trade Practice Act compliance programs.
Procedural Compliance Program
Do I need more than a compliance manual?
Procedural compliance programs consist of processes, policies, procedures, protocols and are managed by people. They should be available throughout the company in the form of a compliance procedure manual either in hard copy form or readily accessible from the company’s intranet.
Simply having the policies and procedures documented does not really constitute a compliance program. A compliance program needs the overt support of the most senior management so that a positive compliance culture is evolved. A poor compliance culture exposes a company to negative consequences such as adverse publicity and substantial financial and human resource costs.
Australian Standard 3806 suggests that procedural compliance will be achieved through having systems and processes in place that ensure that the company abides by the relevant sections of the Trade Practices Act.
To be effective, a Trade Practices Act procedural compliance program must join seamlessly with the business processes of the company. It should be consistent in format with other operational guidelines and should take into account the responsibilities of the individual managers of the company.
We work with clients to develop cost effective procedural compliance programs that are appropriate to their needs.
For more information contact:
Steve Moses on 0417 242 076 or
email
Behavioural Compliance Program
How should a training program be structured?
It is estimated that over 80% of the breaches of the Act are unintentional and occur through a lack of a working knowledge of the Act. Unintentional breaches of the Act are most likely to be committed by staff involved in selling or marketing. In most cases this is due to the pressure on them to achieve performance related objectives and most often occur ‘in the heat of the battle’.
Unintentional breaches are mostly behavioural in nature when behaviour is defined as the things we say and do. Training can provide a working knowledge of the Trade Practices Act and this can result in behaviour modification that reduces the risk of committing an offence.
A properly designed Trade Practices Act behavioural compliance training program should resemble an inverted pyramid. The more senior the manager, the greater the need for a broad understanding of the Act. Sales and Marketing staff need to understand sections of the act relevant to their position. A one-size fits all approach to behavioural compliance training is likely therefore to be inappropriate for all staff.
Freedom of choice is perhaps the most compelling reason to implement a Trade Practices Act behavioural compliance training program. In almost all cases that go before the court, part of the penalty will almost certainly be the implementation of a compliance training program. There is a vast difference in the effectiveness of training conducted as a punishment and training conducted as part of the company’s total commitment to its staff.
We work with clients to implement cost effective behavioural compliance training programs that are specific to their needs.
For more information contact:
Steve Moses on 0417 242 076 or
email