Responding to the UK regulators' new assertive approach to supervisory interventions

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UK financial services regulators are making an escalating number of assertive supervisory interventions, including in the asset management space. The FCA in particular is increasingly deploying its supervisory powers quickly, aggressively and adventurously to address perceived immediate risk of consumer harm, responding to criticism of the duration of enforcement investigations which by their nature address only historic breaches.

This risk may crystallise for asset managers in various areas but most probably in respect of Consumer Duty implementation, risk/liquidity management, AML/financial crime, conflicts and ESG.

The regulators’ powers have scope and impact the breadth of which is often underappreciated. They can severely disrupt a firms’ businesses and individuals’ careers. It is critically important for all asset management firms to learn how to manage and mitigate this risk and where necessary to challenge interventions.

Regulators virtually have a blank slate to impose a wide range of (often highly impactful) requirements on firms, restrict a firms’ activities and even cancel their permissions, obstruct senior manager approvals, intervene in product lifecycles and require redress. And with the FCA having simplified its internal decision-making processes for such interventions, in practice firms now have much less time to act before an intervention risk crystallises.
This training will be on a Chatham House Rule basis and will incorporate breakout discussions and case studies focusing on the following:

• The regulators’ supervisory interventions powers and how they are exercised.
• Trends and the regulators’ focus areas for assertive supervision, focusing on the asset management sector.
• Practical ways for asset management firms to proactively manage and mitigate supervisory interventions risk, and to challenge supervisory interventions where needed.

Key Learning Objectives:

• Enhance knowledge of the nature and scope of the regulators’ supervisory interventions powers.
• Obtain insight into key risk areas for supervisory interventions in the asset management space.
• Develop a strategic toolset for managing supervisory relationships and mitigating/de-escalating interventions risks.
• Where an intervention is threatened, learn how to manage the situation for the most optimal outcome.
• Identify steps to manage associate litigation and reputational risk, including relating to customer complaints.

• Legal
• Regulatory affairs

09:30 Welcome and introduction

• Plenary: why the regulators are doing this – and why this matters to you; the regulators’ powers and internal decision-making; examples of supervisory interventions

Interventions: scanning for developing risks

• Plenary: upcoming focus areas for supervisory interventions in asset management
• Breakouts: developing areas of supervisory scrutiny you’re experiencing

10:20 Break

10:30 Mitigating interventions risks

• Plenary: key tips and strategies for responding to supervisors’ concerns
• Breakouts: case study – responding to supervisors’ concerns

11:15 Break

11:25 Managing an intervention

• Plenary: enforcement investigation vs supervisory interventions: strategies contrasted
• Breakouts: case study – responding to a threatened intervention

12:15 Plenary: managing your litigation risk

12:25 Plenary: key takeaways

12:30 Close and networking lunch

IA Member £395.00 +VAT
Non-Member £545.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:
From January 2022 we will return to classroom based training deliveries. IA training courses can also be accessed virtually on the day if required, as it may be convenient for those delegates unable to travel into London on the delivery date.

We will continue to monitor and follow government guidance regarding coronavirus (Covid-19) to ensure the safety of our team and our members. Please be advised some training courses could change from hybrid delivery (being held in-person and

Nik Kiri, Partner, Financial Regulation

Nik has extensive experience of advising banks, broker-dealers, insurers, asset managers, wealth management firms and listed companies on regulatory and compliance matters, focusing especially on contentious regulatory and compliance risk management issues. Nik’s experience includes conducting internal investigations and reviews; assisting clients in managing Skilled Persons’ reviews; advising clients on managing communications with regulators; representing clients in FCA/PRA supervisory interventions, investigations and enforcement proceedings (including before the Regulatory Decisions Committee, in the Upper Tribunal and in the higher courts); advising clients on past business reviews and redress/remediation programmes; and assisting clients in managing civil litigation risks arising out of regulatory failings.

[Others tbc – likely 1-2 partners with contentious regulatory and asset management financial regulation advisory practices, supported by 1-2 senior/managing associates with contentious regulatory practices.]