The internal control mechanism of fund managers generally includes four levels:
One is employee self-discipline. Employees may not be self-disciplined, so they should be strictly managed. Moreover, employee self-discipline can be achieved not only by strengthening enterprise supervision, but also by putting this belief in the hearts of every employee. It is this inner strength that is more reliable and lasting.
The second is the inspection and supervision of department heads (including supervision and audit). Department leaders should actively perform procuratorial duties, otherwise it will cause great losses to the company.
Third, the management of the company monitors personnel and business. If the supervision and control are not strict, it will definitely cause employees to slack off.
The fourth is the inspection, supervision, control and guidance of the board of directors or special committees under its leadership, which is also the key to the whole internal control.
Basic elements of internal control of fund managers;
The basic elements of internal control of fund managers include five aspects: control environment, risk assessment, control activities, information communication and internal monitoring.
(1) Control environment.
The control environment constitutes the basis of the company's internal control, including business philosophy and internal control culture, corporate governance structure, organizational structure, employee's moral quality, etc.
Fund managers should firmly establish the concept of giving priority to internal control and risk management, cultivate the risk prevention awareness of all employees, create a strong internal control culture atmosphere, ensure that all employees know the national laws and regulations and company rules and regulations in time, and make the risk awareness run through all departments, posts and links of the company.
Fund managers shall, according to their own operating characteristics, establish a strict and effective internal control defense line with progressive levels and unified powers and responsibilities:
1. The responsibilities of each post are clear, with detailed job descriptions and business processes. Before taking up the post, you should know and promise to abide by it in writing, and take responsibility within the scope of authorization.
2. Establish an important business voucher transmission and information communication system, and supervise and check each other between relevant departments and posts.
3. The company inspector general and the internal supervision and audit department are independent of other departments, and strictly check and feedback the implementation of the internal control system.
(2) Risk assessment.
Fund managers should establish a scientific and rigorous risk assessment system, identify, evaluate and analyze the internal and external risks of the company, and timely prevent and resolve risks.
The risk assessment system of the fund manager can send out early warning and alarm signals to the fund operation; The independent risk performance evaluation team provides daily, weekly and monthly fund management risk indicators evaluation reports as a reference for decision-making. Fund managers should vigorously use modern information technology to promote the quantification and automation of risk management.
(3) Control activities
Fund managers can control the operation of business activities through authorization control. The main contents of authorization control include:
1. The shareholders' meeting, the board of directors, the board of supervisors and the management should understand and perform their respective functions and powers, establish and improve the company's authorization standards and procedures, and ensure the implementation of the authorization system.
2. All business departments, branches and employees of the Company shall exercise corresponding responsibilities within the scope of authorization.
3. The authorization of the company's main business shall be in written form, and the authorization letter shall specify the authorization content and time limit.
4. The authorization of the company should be appropriate, and an effective evaluation and feedback mechanism should be established for the authorized departments and personnel, and the authorization that is no longer applicable should be revised or cancelled in time.
(4) information exchange
Fund managers should maintain smooth information communication channels and establish a clear reporting system. The company should communicate with employees regularly to ensure that employees know the company's strategic direction, business policy, short-term and long-term goals in time. In corporate management and capital operation, all departments should maintain their own independent channels of reporting to the management.
(v) Internal control
The fund manager shall establish an effective internal control system, set up an inspector general and an independent supervision and auditing department to continuously supervise the implementation of the company's internal control system and ensure the implementation of the internal control system.