The new international compliance standard being
developed could become the benchmark for making out due diligence
A new international compliance standard is currently being
developed that will provide a globally recognized benchmark for all
organisations – public, private and not-for-profit.
The required process involves a detailed and rigorous testing by
the relevant member nations that can take over three years, with
the next international meeting planned in Paris for September this
Australia, via the Australasian Compliance Institute (ACI), is
sponsoring an International Organisation for Standardization (ISO)
Committee charged with the development of an international
compliance standard with Standards Australia being the secretariat
for Project Committee ISO/PC 271- Compliance programs.
An Australian Committee is taking the lead on the development of
the standard with the Chair of the international committee being Mr
Martin Tolar, ACI Managing Director of the ACI.
Mr Tolar said that "The standard once finalised will
provide an international benchmark for all organisational
compliance programs and builds upon the experiences derived from
the Australian compliance standard AS 3806 since 1998."
Mr Tolar also added, "Standards Australia and the ACI will
play a leading role in developing the standard through the rigorous
international approval process that can take over three years from
inception to complete. This period is necessary to ensure that all
relevant member nations' requirements are considered and so
that a practical yet robust standard is established. This will be a
significant positive factor in promoting international business
Clayton Utz Governance and Compliance partner Randal Dennings
has been appointed by the Law Council of Australia to represent it
on the Australian committee.
Organisations should watch this space as the new standard has
the potential to be adopted by regulators internationally as the
accepted benchmark for making out due diligence defences and
ultimately for the assessment of adequacy of organisational efforts
in the context of breaches or control failures.
Clayton Utz communications are intended to provide
commentary and general information. They should not be relied upon
as legal advice. Formal legal advice should be sought in particular
transactions or on matters of interest arising from this bulletin.
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