Regulatory References

This is a practical session for those working in investment management firms who will be involved in implementing the FCA’s regulatory reference rules, as well as operating their firms’ internal processes relating to regulatory references post-implementation. This session will focus on the new regulatory references regime that has been in place for banks and building societies since March 2017, and the FCA has confirmed will be extended to cover FCA-only authorised firms.

Many banks and building societies at first underestimated the complexity of the FCA’s rules in this area, as well as how straightforward it may be for them to implement these rules. Implementation requires a delicate balance to be struck between a firm’s regulatory obligations on the one hand, and its employment law obligations on the other.

Members of Allen & Overy’s employment and regulatory teams will run through the requirements of the FCA’s regulatory reference regime and flag some of the thorny issues that firms are likely to encounter, as well as the risks that firms may face when providing regulatory references in respect of former employees. Allen & Overy will also reflect on challenges that its bank and building society clients have experienced already in relation to regulatory references.

KEY LEARNING OBJECTIVES: 

• Develop a detailed understanding of the FCA’s new regulatory reference rules, and the policy reasons behind them.
• Discuss how decisions taken by firms in relation to employee conduct may impact what firms are required to include in regulatory references.
• Explore the FCA’s requirements around updating regulatory references and requesting refreshed regulatory references, including when firms may need to go through these processes.
• Debate how firms should respond to regulatory references received from other firms, and how the information included in those references can be used.
• Undertake case study scenarios to explore potentially challenging issues that may arise when firms are required to provide or receive regulatory references.
• Understand the legal risks that may arise in relation to the provision of regulatory references, as well as how these risks may be mitigated.

IA Member £375.00 +VAT
Non-Member £450.00 +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.

13:00 Networking lunch

• A sandwich lunch will be provided and an opportunity for you to network with the trainer and other delegates

13:30 The FCA’s new regulatory reference requirements

• When do you have to request regulatory references?
• When do you have to provide regulatory references?
• When do you have to provide updated regulatory references?
• When may you need to request refreshed regulatory references?

14:15 What should be included in a regulatory reference?

• An overview of the FCA’s content and format requirements
• Including information in relation to Code of Conduct breaches and/or fitness and propriety issues
• Drafting impaired regulatory references – hints and tips
• Challenges relating to overseas employees

14:45 Tea/Coffee Break

15:15 Regulatory reference scenarios

• Interactive scenarios to demonstrate the various aspects of the FCA’s regulatory reference rules, that will have been covered earlier in the session

15:45 Legal risks associated with regulatory references

• Key legal risks that can arise in relation to the provision of regulatory references
• Practical guidance on how to mitigate those risks in practice

16:15 Summary

16:30 Close

This course is aimed at those working for Investment Management firms who will have responsibilities relating to the implementation and maintenance of processes relating to regulatory references. In most firms, this will include HR. However, those in Legal and Compliance may also have responsibilities in terms of contributing to regulatory references that are provided.

Sarah Henchoz

Sarah is a Partner in Allen & Overy’s Employment practice. She leads Allen & Overy’s Senior Managers and Certification Regime (SM&CR) Working Group from an employment perspective. She advised a number of banks and building societies in relation to the implementation of the SM&CR, and is already instructed by a number of FCA-only authorised firms to provide advice in relation to their implementation projects. She has been involved both in SM&CR mapping and scoping exercises for financial institutions, as well as providing more detailed advice on employment issues arising from a variety of implementation and post-implementation challenges.

Working in conjunction with Allen & Overy’s regulatory team, Sarah has delivered a number of training sessions on the SM&CR issues. Sarah has also contributed to our market-leading publications on the SM&CR.

Sarah Hitchins

Sarah is a Senior Associate in our Banking, Finance and Regulatory Litigation Group. Sarah specialises in representing firms and individuals involved in financial services regulatory investigations and enforcement action in relation to a broad variety of wholesale, retail and financial crime issues. Sarah also advises financial institutions on a range of non-contentious issues, including compliance obligations and senior management accountability arrangements.

Sarah is a member of our Senior Managers and Certification Regime (SM&CR) Working Group and advised a number of banks and building societies in relation to the implementation of the SM&CR, as well as the litigation and regulatory enforcement risks associated with it. Sarah has also been advising a number of firms in relation to issues arising in relation to the new Regime post-implementation, such as fitness and propriety assessments, disciplinary processes and how the regulators may expect firms to operate the new Regime in practice. Sarah has also already been instructed by a number of FCA-only authorised firms to advise them in relation to their SM&CR implementation plans.

Sarah is the co-author of Allen & Overy’s market-leading publications on the SM&CR, and regularly speaks at client and industry-wide events on the SM&CR.

Sarah has completed a secondment to the Enforcement Division of the FSA (as it then was). In 2015, Sarah was selected by Global Investigations Review (GIR) as one of the top 100 women in investigations.