U.K. managers told to keep eye on employees’ out-of-office lives
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Money managers operating in the U.K. are not only having to enhance the scrutiny and assessment of their employees based on behavior inside and outside the office as the result of a new conduct regulation, they re also having to set their own criteria against which to judge staff.
The enhanced regulation is supposed to bring more accountability to those running client money by weeding out bad behavior and ensuring that the U.K. Financial Conduct Authority is kept up to date with the professional and personal conduct of money management executives. But the non-specific nature of what constitutes bad behavior which is open to interpretation by individual money management firms rather than being defined by the regulator could lead to a witch hunt, with employees potentially fired for crazy reasons, one source at a law firm warned, asking not to be identified.
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Under the Senior Managers and Certification Regime the regulator publishes and maintains a directory of certified and assessed persons on the Financial Services Register so consumers and professionals
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FCA to question firms on diversity and inclusion
By Sonia Rach 27
th April 2021 9:16 am
The Financial Conduct Authority plans to interrogate firms on diversity and inclusion by adding a sixth question to its conduct questions list.
Currently the five conduct questions, focus on “tone from within” and require every person in an organisation to be personally accountable and engaged.
Speaking at a virtual event at NYU Law School, FCA executive director of enforcement and market oversight Mark Steward said the regulator is “considering a sixth question”.
He also discussed how the Senior Managers and Certification Regime (SMCR) has changed the way firms allocate and align responsibilities.
Firms face ‘last chance’ for directory persons deadline
By Katey Pigden 27
th April 2021 8:46 am
Financial firms who did not meet the Financial Conduct Authority’s directory persons deadline at the end of March are being urged to heed the final call for submissions.
Last week, the FCA emailed some 2,800 consumer-facing firms who did not submit the required information about certified staff, giving them a week to comply, according to B-Compliant.
The compliance firm’s director Vicky Pearce, said: “It is likely many small firms without compliance support were so busy, the original 31 March directory persons deadline passed them by. In the case of mortgage advisers, it might have been that they weren’t included in CF30s and did not realise they had a responsibility to submit.
Compliance, Culture And Evolving Regulatory Expectations, Speech By Mark Steward, UK Financial Conduct Authority Executive Director Of Enforcement And Market Oversight, Delivered At NYU Law School Date
Event: NYU Law School (Virtual)
Delivered: 31 March 2021
Highlights
The Senior Managers Regime (SMR) has changed the way firms allocate responsibilities, align those responsibilities to relevant controls and ensure oversight as to how these controls operate down the line.
The 5 Conduct Questions (5CQ), which start with ‘tone from the top’, are increasingly focussing on ‘tone from within’ which requires every person in an organisation to be personally accountable and engaged.
Every employee of a regulated firm is subject to individual conduct rules, which impose broad obligations.