Record keeping requires diligence. Records may be stored in various ways, in hard copy or electronically either within the premises or offsite.
Entities must keep records to comply with regulatory requirements administered by a range of regulators – the ATO, the OAIC, ASIC, AUSTRAC and other regulators. The stored documents provide important evidence and information that may need to be produced when requested by regulators, auditors, compliance personnel and consultants who are engaged to provide third party services. Some of them may be required for due diligence for takeover or merger purposes.
Proper record keeping involves:
- creating accurate and complete records
- keeping records for a specific period in accordance with the different laws
- being able to search and retrieve the records readily
- maintaining version control and the final, approved versions
- keeping them safe from misuse
- ensuring that they are destroyed when they are no longer required
- regularly monitoring the record keeping and retrieval processes
Records can include:
- correspondence with regulators
- lodgements with regulators
- board and committee minutes
- senior manager approvals
- affirmations and reports by various personnel
- reports and recommendations by consultants
- internal compliance registers and supporting documents
- contracts and agreements
- relevant details of identification documents
- emails and other correspondence
- audio and video files
- phone recordings
- transaction details
- logs and databases
- software code
You can meet your record keeping obligations by making or keeping records yourself or by using an external provider. Note that if you use a third party, you must assess the third party prior to appointment and thereafter, continue to regularly check that the third party remains capable of providing the service.
Note that if you suspect or know that that a document or record could be used as evidence in a legal matter, you must maintain the document. If in doubt, don’t throw it out or amend it. Seek legal advice.
If you would like us to assess your record-keeping and information retrieval for compliance purposes, you can contact admin@knowcompliance.com.au or call Leon Betheras, director, on 0411578642 for further information.