A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee. What is the correct next course of…

Question

Options

• ARequest that the new product approval committee include the compliance officer.
• BGo to the board of directors and try to shut the new service down immediately because the
• CGet as much information as possible from the source so that potential risks can be researched
• DStart initial research into potential risks but wait until notified that the service has been approved

• A
  83% (20)
• B
  4% (1)
• C
  4% (1)
• D
  8% (2)

Explanation

The correct next course of action is to request that the new product approval committee include the compliance officer. This is because the compliance officer has the responsibility to ensure that the new financial service complies with the applicable laws, regulations, and standards, and does not pose any undue risks to the institution or its customers. The compliance officer should be involved in the new product development process from the beginning, and provide guidance and feedback on the potential compliance implications and requirements of the new service.

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