Mr. Philip Hosford:

We are quite happy with the concept that there would be risk management and compliance officers. The point is that there will an internal audit function, a risk management officer and a compliance officer. Who will fill these roles? The risk management and compliance officers cannot be directors. We would not have any major issue in this area but there is a question mark over who will fulfil these functions.

The next question arising is that a risk and audit committee can be set up. The internal audit function can report to the audit committee if it is set up. There is no indication that the risk officer can report to the risk committee if that committee is set up. The current draft indicates that the risk and compliance officers would report directly to the board of directors. If personnel are reporting directly to the board of directors, there is an obvious need for somebody capable and confident enough to do that. It struck us that there is a lack of integration between all the different functions of internal audit, compliance and risk officer. From our perspective, we will have a risk and audit committee. How will they liaise?