Reviews and gives an opinion on current laws and regulations or those under consultation so that the Club has a technical position, and promotes good corporate governance practices in the sector.
Objective and functions
Review and give an opinion on current, pending or publicly consulted regulations and laws, so that the Club can have a technical and professional position on the legal matters that affect the financial sector and risk management, and promote good corporate governance practices.
- 01Review and give an opinion on current, pending or publicly consulted regulations and laws that affect the financial sector and risk management.
- 02Review, from a legal perspective, the proposals for regulations and rules that arise from the other committees.
- 03Promote the legal and regulatory development of good corporate governance practices, with periodic documents, training and discussions.
- 04Encourage institutions to adopt the international ISO 31022 Legal Risk framework.
- 05Hold discussions with figures from the public and private sectors.
What legal and regulatory risk and corporate governance are
Legal risk
Risk related to legal, regulatory and contractual matters, and to non-contractual rights and obligations. The ISO 31022 standard treats it broadly: it is not limited to compliance or contracts.
SourceISO 31022:2020, Legal risk management: guidelines (opens in a new tab)
Compliance risk
Risk of penalties, financial losses or reputational damage from failing to comply with laws, regulations, codes of conduct and standards of good practice.
SourceBasel Committee (BCBS), Compliance and the compliance function in banks, 2005 (opens in a new tab)
Corporate governance
The system by which an institution is directed and controlled: it defines the responsibilities of the board and senior management, the risk management framework and accountability. The Basel Principles for banks (2015) and the G20/OECD Principles (2023) are the international references.
SourcesBasel Committee (BCBS), Corporate governance principles for banks, 2015 (opens in a new tab)G20/OECD, Principles of Corporate Governance, 2023 (opens in a new tab)
How it is measured and quantified
There is no single formula. It is measured with inventories, ratings and periodic assessments.
Inventory and assessment of regulatory changes
Record of applicable rules and those under consultation, with impact assessment, owner and compliance date.
Compliance risk assessment
Rates inherent risk by area and obligation, compares it against controls and arrives at a residual risk.
Legal exposure
Amount and probability of ongoing litigation, penalties and contractual contingencies, and their coverage through provisions.
Compliance indicators
Supervisory findings, compliance deadlines met, breaches detected and closing time.
Corporate governance assessment
Self-assessment of the board and committees, independence, diversity of skills and quality of the information the board receives.
How it is managed
Coordination
Those who lead the committee. The coordination and co-coordination roles rotate once a year.
Coordination
Henry P. Ben Almanzar
Compliance Director, ADAP
Co-coordination
Junot García
Assurance Director, PwC
Regulations and recommended readings
Standards and documents that the committee uses as the basis of its work.
- Law 183-02, Monetary and Financial Law
- Current regulations from the superintendencies and local bodies
- ISO 31022:2020, Legal risk management: guidelines (opens in a new tab)
- Basel Committee (BCBS), Corporate governance principles for banks, 2015 (opens in a new tab)
- G20/OECD, Principles of Corporate Governance, 2023 (opens in a new tab)
Sign up for this committee
Members who wish to take part notify the Club’s Executive Committee, and this form is the channel. Regular members and representatives of sponsor members may take part. Not a member yet? Find out how to become one.
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