Industry Experts Advise Financial Institutions What to Expect Under the FCA and How Best to Approach a Conduct Risk Programme
Wolters Kluwer Financial Services today announced its new ARC Logics Conduct Risk Governance Solution for firms governed by the Financial Conduct Authority (FCA). The solution will enable firms to manage their entire Conduct Risk programme, helping to ensure they remain compliant, efficient and transparent to internal stakeholders, regulators and shareholders. The company has integrated its Conduct Risk Governance solution within the company’s proven ARC Logics’ enterprise risk management (ERM) solution suite.
The recent focus on conduct risk issues has sharpened lately due to the introduction of the tri-partite model of financial regulation in the UK on 1 April 2013. At a recent breakfast briefing event, industry experts from the British Bankers Association (BBA), FTI Consulting and Wolters Kluwer Financial Services highlighted the changes made to the regulatory structure following the legal cutover and broke down the expectations of the FCA.
“The FCA has made it clear that it will closely scrutinize the values and ethics of financial institutions, with the best interests of consumers at the forefront of its actions. It expects financial institutions to be able to demonstrate clear oversight of its conduct risk and regulatory obligations, at any given time,” said Peter Tyler, Director of Retail at the British Bankers Association, speaking during the Breakfast Briefing. “Therefore it is essential that financial institutions react to the restructuring of the UK regulator as an opportunity to instil a positive culture to compliance throughout its business.”
Wolters Kluwer Financial Services has also released a paper “Conduct Risk and the FCA: What’s your next move?” to expand on what financial institutions can expect under the FCA and to outline the key components of an effective approach to Conduct Risk.
“The new regime requires senior management to be more closely involved in its firm’s treatment of customers via a conduct risk programme which provides a comprehensive view of the governance, culture and controls, across its entire business,” said Richard Pike, Senior Market Manager at Wolters Kluwer Financial Services. “Through ARC Logics’ Conduct Risk Governance solution, financial institutions can achieve this required oversight by understanding the regulatory requirements, issuing policies in line with these requirements, carrying out conduct risk assessments, getting assurance that systems and controls are working and finally getting detailed reports on the entire programme.”