Legal and Regulatory Compliance Policy - SME

The Legal and Regulatory Compliance Policy (P37S) is a comprehensive document developed specifically for small and medium-sized enterprises (SMEs) to ensure they meet their legal, regulatory, and contractual obligations without the need for a dedicated compliance team. As noted in the document’s scope and the assignment of the General Manager (GM) as the accountable officer, this is an SME policy. The policy provides clear, step-by-step requirements to recognize, manage, and evidence compliance with core frameworks such as ISO/IEC 27001:2022, the EU GDPR, NIS2, DORA, and client-specific contractual terms. This policy ensures that all employees, contractors, and third-party vendors understand their obligations related to legal compliance and are empowered to execute their responsibilities effectively. It sets explicit expectations for the handling of data, the enforcement of obligations set out by client contracts, and the management of audit requirements. Particular emphasis is placed on the Compliance Register, a simple yet structured log, maintained by the GM, which tracks all relevant laws, contractual terms, and monitoring duties. This register must be updated regularly to reflect changes in laws or business circumstances, ensuring no compliance duty is overlooked. Beyond governance, the policy mandates annual compliance training for staff and clear onboarding requirements for new hires, covering essential topics such as confidentiality, cybersecurity hygiene, sector-specific regulations, and client contract clauses. It also details rigorous procedures for monitoring and responding to changes in the legal landscape, managing exceptions through formal documentation, and handling incidents or suspected compliance failures promptly and transparently. If a compliance exception is needed, the process ensures clear justification, approval, and tracking by the GM. Record-keeping and audit readiness are central tenets of this policy, supported by requirements to securely store contracts and evidence compliance activities throughout operational processes. There are dedicated provisions for third-party engagements, requiring vendors to sign Data Processing Agreements (DPAs), notify the GM of breaches or legal changes, and undergo annual reviews of their compliance standing. The document reinforces both proactive (training, contract management, risk assessments) and reactive (incident response, legal hold, regulatory reporting) controls, with consequences for non-compliance clearly stated, ranging from internal disciplinary action to termination, legal claims, or removal from the approved vendor list. As part of Clarysec LLC's SME suite, this policy assures clients, regulators, and partners that robust compliance mechanisms are in place, yet are managed in a practical, resource-conscious manner. Importantly, it enables SMEs to meet the expectations for ISO/IEC 27001:2022 certification and similar requirements by embedding legal compliance methods across all internal processes and linked policies, including Acceptable Use, Data Retention, Incident Response, and Social Media Communications.