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and realization of the importance of compliance,
an inside-out approach. Various edutainment
activities were organized. For example, a Q&A
competition related to Code of Conduct,
matching pairs between compliance with the
Code of Conduct and the risks of non-compliance.
In addition, there were exhibitions and activities
on stage highlighting various aspects of Corporate
Governance. The SET president presided over
the opening of the event and participated in
various activities mingling with the staff, as a
normal practice.
• Arranging meetings for employees to enhance
their understanding of SET’s CG policy and Code
of Conduct.
• Monitoring compliance
with CG policy and Code of Conduct
In 2014, SET operations strictly complied with SET
CG policies or Code of Conduct. There were no compliants
involving wrongdoing or business malpractice by SET
governors, management or staff that went against SET
CG policies or Code of Conduct. In 2014, there was no
case involving a Board member or SET employee for
violation of SET rules and regulations or using insider
information or misusing authority in securities trading.
(5) Internal control system
Realizing the importance of efficient internal control
at all levels, the BoG has strongly supported management
in setting up transparent working processes, restructuring and
segregating duties with checks and balances, clearly
specifying authority and put things in writing. Monitoring
system has also been set up. The BoG appointed an
Audit Committee to supervise and review SET’s internal
control system to ensure conformity with international
standards. The Internal Audit Department is an
independent function that reports directly to the Audit
Committee on audit matters. Administrative matters
have to be reported directly to the SET president. Audit
Committee members consider the appointment, transfer
or removal and evaluate the Head of the Internal Audit
Department. Currently, Wipha Leethakulnumchai is
Head of the Internal Audit Department.
The Internal Audit Department is independent in
the access of necessary information for auditing. The
Internal Audit Department audits and evaluates the
adequacy, suitability and efficiency of the internal
control system of various procedures and systems
according to SET’s annual audit plan, developed by
using a risk-based approach, to be approved by the
Audit Committee. The audit findings and follow-up
results on the management’s operation have been
directly reported to the Audit Committee continuously.
SET operations are based on the internal control
guidelines and framework of The Committee of Sponsoring
Organization of Tradeway Commission (COSO) which
contains 5 components and 17 principles.
In 2014, SET carried out important activities and
projects that supported the enhancement of effective
internal control system and internal audit, which can
be summarized as follows:
• In 2014, SET gave priority to achieving international
standards by reviewing the implementation and
development of post-trade services to meet the
standard of the Principles for Financial Market
Infrastructure (PFMI), assigning the Internal Audit
Department to review in compliance with PFMI
standard.
• SET has continued to enhance its computer system
so members can make transactions more conveniently
and efficiently, having better control system, with
continuous intensive testing. The Internal Audit
Department was assigned to conduct a pre-implementation
review of the new system before it was put into use.
On May 6, 2014, SET successfully operated the
new computerized trading and settlement system
for derivatives. The system worked smoothly and
efficiently. The upcoming system under development
is the settlement and securities deposit system for
equity instruments, scheduled to launch in 2015.