98 Additional Information We Are Kenanga Leadership Message Our Sustainability Approach How We Are Governed Financial Statements Shareholders’ Information ETHICS AND COMPLIANCE STATEMENT OUR APPROACH OF PRESERVING GOOD GOVERNANCE As a measure to achieve the highest standards of corporate governance in the highly regulated environment of the capital markets, the ‘Ethics Risk Management Framework’ (“EMF”) and ‘Compliance Management Framework’ (“CMF”) have been established within GRCS providing the structure and guidance for systematic and consistent oversight and monitoring functions for compliance and ethics. The same frameworks work to address and manage sustainability matters of Kenanga. The EMF and CMF are risk-based, centre-led approaches that incorporate two (2) core principles of risk mitigation and risk monitoring which complement each other: In essence, the EMF and CMF are vital approaches which serve as foundations in the implementation and continuous review and update of the appropriate ethics and compliance programs in Kenanga. The approaches synchronise the handling of ethics and compliance issues in order to preserve the good corporate culture of Kenanga. OUR REGULATORY AWARENESS AND COMPLIANCE TOOLS GRCS plays a key role in the facilitation of regulatory issuances across Kenanga as an effort to ensure awareness of the employees of revised and new requirements issued by the regulators. In 2022, there were a total of three hundred eighty-seven (387) revised and new frameworks, guidelines and circulars, and nineteen (19) consultation papers which were facilitated by GRCS effectively. Ethics and Compliance Risk Mitigation Ethics and Compliance Risk Monitoring Identify the risks associated with business of Kenanga Measure the risks in order to assign their severity level Assess for appropriate controls to address any deficiencies Implement the controls involving the relevant parties in Kenanga Educate and train on the controls highlighting consequences of failing to comply Monitor and test if risk mitigation is working properly via various measures: • Identify critical and high-risk areas • Identify key compliance risk mitigation activities • Identify routine business transaction associated to compliance obligations • Review and test compliance with legal and regulatory requirements • Review and test implementation of policies and procedures Number of Regulatory Issuances BNM SC B.SEC B.SEC.CLR B.DER B.DER.CLR B.DEPO FIMM ORS 66 20 40 60 80 100 120 140 40 7 135 3 71 7 15 21 20 14 31 1 14 1 revised and new frameworks, guidelines and circulars consultation papers 0 0 0 0
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