Compliance organisation formed to oversee Marsh reforms

Marsh & McLennan (MMC) has formed a global compliance organisation that will oversee a succession of changes it has issued to compliance procedures in response to the Spitzer probe.

The organisation would be responsible for MMC's global compliance procedures, the company said. It will also focus on assuring compliance with all regulations and professional and ethical standards.

The changes being made to the company's compliance process will include a review of existing professional standards to ensure its principles are sufficiently comprehensive to support reforms in the new business model.

There will also be a formal company-wide review process installed to ensure new products and services comply with MMC's ethical and professional standards.

The company said it was also installing an internal, responsive and secure compliance and ethics “hotline”.

Michael Cherkasky, appointed as MMC chief executive yesterday, said: “We are demonstrating our commitment to our clients and the markets and taking a leadership position in industry reform.”