Senior Management Safety 2010


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"Had I had the guidance of an expert, with the experience I now have today, my company and our board would have saved hundreds of thousands in costs, a similar amount in lost productivity and we would have reduced our personal and corporate risk."

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  • Also SYSC 4.4.3  01/04/2009 A firm must take reasonable care to maintain a clear and appropriate apportionment of significant responsibilities among its directors and senior managers in such a way that: (1)  it is clear who has which of those responsibilities; and (2)  the business and affairs of the firm can be adequately monitored and controlled by the directors, relevant senior managers and governing body of the firm.
  • Use of the power to suspend firms or individuals by stopping them undertaking some or all of the activities which they are permitted to carry on for a period of time;Use of the power to impose financial penalties on individuals who have carried out controlled functions without the necessary approval from the FSA;Our policy on the use of the power to gather information in relation to financial stability from specified categories of both authorised and unauthorised persons to help identify potential threats to the UK financial market;
  • SYSC 4.3.1  01/04/2009 A 11, 2firm  when allocating functions internally, must ensure that senior personnel and, where appropriate, the supervisory function, are responsible for ensuring that the firm complies with its obligations under1 the regulatory system1. In particular, senior personnel and, where appropriate, the supervisory function must assess and periodically review the effectiveness of the policies, arrangements and procedures put in place to comply with the firm's obligations under1 the regulatory system1 and take appropriate measures to address any deficiencies. [Note: article 9(1) of the MiFID implementing Directive]
  • Senior Management Safety 2010

    1. 1. Protecting Senior management 2010<br />Presented by Tony Woodward - Chartered FCSI<br />
    2. 2. Mindset<br />‘There are risks and costs to a programme of action but they are far less than the long-range risks and costs of comfortable inaction’ <br />-John F. Kennedy<br />
    3. 3. Regulatory Environment 2010<br />FSA conduct Senior Management interviews<br />Corporate Governance = 40% risk weighting with FSA<br />Early Involvement in Product Design<br />Focus on Orderly Markets<br />‘FSA bans three directors from senior management roles for life’<br />28th July 2010<br />
    4. 4. Problems<br />Senior Management see FSA actions as being against bad firms – not firms like theirs<br />Senior Management see their compliance function as responsible for compliance<br />Staff see compliance as a nuisance – limited or no buy-in<br />FSA willassume you or your firm are guilty unless proven innocent<br />
    5. 5. Impact<br />FSA can remove Senior Managers without explaining why<br /><ul><li>Loss of livelihood
    6. 6. Ban from industry
    7. 7. Fines individuals</li></ul>FSA can order Section 166 or scrutinise in public<br />FSA can fine or close down firms<br />‘Be afraid…..<br />be very, afraid’<br />Geena Davis – The Fly 1986 <br />
    8. 8. Your Firm - Good or Bad?<br />‘There is no try; <br />you do <br />or <br />you don’t’<br />-Yoda, Jedi Master <br /> & Philosopher<br />Compliance Culture?<br />Systems and Controls?<br />TCF?<br />Monitoring?<br />Deep Board involvement?<br />
    9. 9. How it should be<br />Board<br />Does your firm work like this?<br />Policy / Training<br />Collate + Report<br />Compliance Culture<br />Monitor / Sample<br />7<br />Mentoring for Senior Management<br />
    10. 10. Make the Changes<br />‘Excellence is not a spectator sport. Everyone’s involved’<br />-Jack Welch<br />Embed a Compliance Culture<br />Board driven compliance<br />Inherent TCF<br />Involve all staff to gain buy in<br />Start today!<br />
    11. 11. How do I know?<br />FSA Scrutiny:<br />£500,000 to defend + Lost Productivity and Cost of Management Time<br />Tony Woodward – Track record:<br />CEO of City Firm 2000-2009<br />Survived s.166 with no fines or sanctions against Directors or the Company<br />Lectured to CISI on TCF Oct. 2008<br />
    12. 12. Tony Woodward<br />Chartered Fellow of the Chartered Institute for Securities and Investment<br />Advisor to two TISA committees – RDR and Wrap Platforms<br />Director Dresdner Kleinwort Benson <br />1982-1998<br />CEOARjENT Limited 2000-2009<br />Section 166 in 2008<br />Lectured to CISI on TCF Oct. 2008<br />com·ply/kəm*plī/Verb<br />1. Act in accordance with a wish or command.<br />2. Meet specified standards<br />
    13. 13. Stay Safe…..<br />Protecting senior management by helping them get it right<br />Tony Woodward<br /><br />+44 (0) 20 7 520 9045<br /><br />