Corporate Governance |
Recommendation 11/2006 of the Hungarian Financial Services Authority provides a comprehensive guideline for the modernization of the internal safeguards in the financial services sector. Taking its lead from fast-paced international developments in the field of corporate good governance, the Recommendation is the new benchmark for those organizations that desire to be at the forefront of international best practice. The Recommendation has introduced important changes and refinements in the areas of internal control and audit, risk management and compliance.
The Recommendation has taken note of developments in the internal safeguards field, particularly Directive 2004/39 (Markets in Financial Instruments Directive – MiFID) and the Committee of European Banking Supervisors (CEBS). In so doing, the Recommendation suggests a new way of looking at the entire range of internal controls at financial institutions by viewing each element as part of an increasingly coherent whole. Its proposals emphasize both an enhanced level of corporate governance and a heightened degree of internal efficiency. It requires financial institutions to take stock of their current internal safeguards, assess their potential shortcomings and forge solutions for their improved operation.
Deloitte stands ready to assist your firm in complying with the Recommendation and in maximizing the opportunities it presents. With our dedicated team of experienced professionals we propose to conduct a comprehensive survey of the current state of your firm’s internal safeguards, compile our findings in a gap analysis prepared in light of the Recommendation’s provisions and draft a detailed plan for implementing the required changes that were identified in the gap analysis.