Regulatory Compliance & Challenges

PresenterFaraz A. Khan

What is Regulatory Compliance?

Regulatory Compliance – Its Importance & Legal Implications

Regulatory Framework

Investigative Approach towards Non-compliance

Exploring learning outcomes from recent events

Coping with new regulation

ISO and Regulatory Compliance

Assurance Tools for Regulatory Compliance

Ensuring Compliance to Environmental Laws in Oil & Gas Sector

Main points to cover:

Presentation Layout

A mechanism to ensure the fulfilment of all applicable requirements stipulated in laws

Internal requirements and compliance standards that are set forth by external entities

Adhering to the requirements of laws, industry and organizational standards and codes, principles of good governance and accepted community and ethical standards

Wha

t is

Regu

lato

ry

Com

plia

nce

Can impact the financial spending of organisation

Employee motivation, organisation’s production growth and its future

Reputation in the local and international market

Impo

rtan

ce

of

Regu

lato

ry

Com

plia

nce

Enforcement / legal notices and penalties

Evaluation of the organisation & increase/decrease in insurance premium

Aids in third party accreditations

Legal Framework

Guidelines

Regulation

Act

- Competency required for effective investigation

Investigation

Approach towards

Legal Non-

Compliance

- Efficient investigation plan

- Defined criteria of Root Cause Analysis

- Confidentiality of the investigation

- Reporting timeline to be followed

- Clearly defined roles

Considerations in investigation

- Compliance with the legislation

- Causes [immediate & system]

- Action to be taken to prevent recurrence non-compliance

- Lessons to be learnt

- What response is appropriate to an alleged breach of the law

Desired outcome of investigation

Investigation

Approach towards

Legal Non-

Compliance

- severity and scale of potential or actual harm

- seriousness of any potential breach of the law

- duty holder’s compliance history, including prior convictions and notices issued

- enforcement priorities

- practicality of achieving results- wider relevance of the event, e.g matters of community concern or emerging issues

Considerations in investigation

Desired outcome of investigation

Investigation

Approach towards

Legal Non-

Compliance

Section-11 of Pakistan Environmental Protection Act

Case Study – A Local Cable Manufacturer

No person shall discharge or emit or allow the discharge or emission of any effluent or waste or air pollutant or noise in an amount, concentration or level which is in excess of the NEQS

The Federal Government may levy a pollution charge on any person who contravenes or fails to comply with

Lear

ning

Outc

ome

– Pa

kist

an

Case

Case Study – A Local Cable Manufacturer

Wastewater quality did not meet NEQS

Case forwarded to Environmental Tribunal

Pollution charged levied upon the industry

Approx. Pak Rs. 200,000 charged to company

Media coverage

Lear

ning

Outc

ome

– Pa

kist

an

Case

New Regulation

“How to Cope with”

Understanding to Regulatory Frame

Well prepared ahead

Good understanding to legal requirements

Designated legal advisor and/or subject matter expert

New Regulation

“How to Cope with”

Knowledge of best practices in similar industries

Good communication mechanism with Regulator

Assistance provided by Regulator

Budgetary constraints should not be a main concern

ISO &

Regulatory

Compliance- Commitments and goals of an organization

- Compliance support processes

- Robust compliance evaluation

Adopts PDCA cycle

Monitoring of compliance through web based compliance management tools

Shows the trending of compliance

Means to intimate compliance actions

Sets the frequency of compliance actions

Auditable system to check the health of compliance

Com

plia

nce

Mon

itorin

g To

ols

– Regu

lato

ry

Assu

ranc

e

Compliance to

Environmental

Laws in Oil &

Gas Sector

THANKYOU