AS 3806-1998

1 - AS 3806-1998 COMPLIANCE PROGRAMS
4 - PREFACE
5 - CONTENTS
6 - SECTION 1 SCOPE AND PURPOSE
6 - 1.1 SCOPE AND APPLICATION
6 - 1.2 PURPOSE
7 - 1.3 REFERENCED DOCUMENTS
7 - 1.4 DEFINITIONS
7 - 1.4.1 Codes
7 - 1.4.2 Compliance
7 - 1.4.3 Compliance failure
7 - 1.4.4 Compliance culture (culture of compliance)
7 - 1.4.5 Legal compliance (due diligence)
7 - 1.4.6 Organization
7 - 1.4.7 Organizational standards
7 - 1.4.8 Systemic and recurring problems
8 - SECTION 2 ESSENTIAL ELEMENTS OF EFFECTIVE COMPLIANCE
8 - 2.1 SCOPE OF SECTION
8 - 2.2 STRUCTURAL ELEMENTS
8 - 2.2.1 Commitment
8 - 2.2.2 Compliance policy
8 - 2.2.3 Management responsibility
8 - 2.2.4 Resources
8 - 2.2.5 Continuous improvement
8 - 2.3 OPERATIONAL ELEMENTS
8 - 2.3.1 Identification of compliance issues
8 - 2.3.2 Operating procedures for compliance
8 - 2.3.3 Implementation
8 - 2.3.4 Complaints handling system
8 - 2.3.5 Record-keeping
8 - 2.3.6 Identification and rectification
8 - 2.3.7 Systemic and recurring problems
8 - 2.3.8 Reporting
9 - 2.3.9 Management supervision
9 - 2.4 MAINTENANCE ELEMENTS
9 - 2.4.1 Education and training
9 - 2.4.2 Visibility and communication
9 - 2.4.3 Monitoring and assessment
9 - 2.4.4 Review
9 - 2.4.5 Liaison
9 - 2.4.6 Accountability
10 - SECTION 3 IMPLEMENTATION OF THE ESSENTIAL ELEMENTS
10 - 3.1 SCOPE OF SECTION
10 - 3.2 GUIDELINES FOR STRUCTURAL ELEMENTS
10 - 3.2.1 Commitment
10 - 3.2.2 Compliance policy
10 - 3.2.3 Management responsibility
10 - 3.2.4 Resources
11 - 3.2.5 Continuous improvement
11 - 3.3 GUIDELINES FOR OPERATIONAL ELEMENTS
11 - 3.3.1 Identification of compliance issues
12 - 3.3.2 Operating procedures for compliance
12 - 3.3.3 Implementation
12 - 3.3.4 Complaints handling system
13 - 3.3.5 Record-keeping
13 - 3.3.6 Identification and rectification
14 - 3.3.7 Systemic and recurring problems
14 - 3.3.8 Reporting
14 - 3.3.9 Management supervision
14 - 3.4 GUIDELINES FOR MAINTENANCE ELEMENTS
14 - 3.4.1 Education and training
14 - 3.4.2 Visibility and communication
15 - 3.4.3 Monitoring and assessment
15 - 3.4.4 Review
15 - 3.4.5 Liaison
15 - 3.4.6 Accountability
16 - APPENDIX A - GUIDANCE FOR SMALL BUSINESS

Provides an outline of, and recommendations for, a program to ensure legal compliance within an organization. Such a program may also be more widely applied to codes of practice and other organizational Standards. The program described is intended for guidance only and to complement any other existing management system that an organization may have in place.

This Standard sets out essential elements for establishing, implementing and managing an effective compliance program within an organization and provides guidance in using these elements. However, this Standard is a guide only and organizations should use the system best suited to their operations.The implementation of some aspects of this Standard may differ for smaller organizations, but compliance policy, commitment and responsibility apply regardless of the size of the organization.NOTE: Guidance for small business is given in Appendix A.This Standard is not intended to take precedence over, or overlap, other management systems such as ISO 9000, but to complement such systems by providing guidance in developing a program for compliance with laws and regulations.While this Standard describes a program that is intended to achieve compliance with the law, it may also be used more widely to assist an organization in complying with codes of practice and organizational standards. All may be dealt with in a similar manner, although some flexibility may be necessary when addressing non-legal issues.Legal compliance is part of an organization's overall risk management, to which AS/NZS 4360 offers good guidance. However, like other areas of risk management, legal compliance has its own characteristics and needs to be considered in the light of applicable legislation and the high standards for due diligence set by the courts. If these standards are not met, major operational problems can result. This means that, to an extent, legal compliance cannot always be handled under the same principles as can be applied to other areas of risk management. The court's requirements for 'due diligence' defences have been set at a very high level, and reducing the standard of the precautions taken, for any reason, can easily lead to a complete loss of defence, leaving company directors and managers exposed. This Standard indicates the methods found most satisfactory in securing proper management of legal risks.Organizational codes and ethics have been included in the overall term 'compliance', because the same standards apply to them as they do to legal compliance.

First published as AS 3806-1998.