Managing Conduct Risk Within Investment Management Firms

This training course is run under the Chatham House Rule, for reference please see here

The course is aimed at Investment Management firms and all staff that operate in areas that contribute to conduct risk within the organisation or provide oversight to it.

The course will provide an introductory to intermediate level of understanding and will have wide appeal across the business to both managerial and technical staff.

It will also be useful as a refresher for all staff that have experience in this area but would like to review their current understanding of conduct risk and the FCA’s current approach to it.

The programme will be of particular interest to personnel working in or engaged with:

• Compliance
• Operations
• Human Resources and Training
• Organisation and Change Management
• Corporate Governance
• Risk Management
• Marketing and Sales
• Product Development
• Corporate Communications

The FCA considers conduct risk to be of great importance. Since the introduction of twin peaks regulation back in 2013, the FCA has been the custodian of Conduct Risk within Financial Services. As the concept of Conduct Risk and its management has grown across all markets, the FCA expects firms and individuals to be clear on what it means in the context of their role and their organisation.

This programme will cover the key elements of conduct risk that are likely to impact Investment Management businesses such as yours. As such, it is imperative that individuals within firms are clear on what conduct risk is and know how to use this knowledge to help identify and manage existing and emerging risks within their area of oversight.

The programme will consider what impact the regulators focus is having, how they see poor culture within firms as a driver for conduct risk, and what firms should consider when developing their thinking on conduct risks and associated controls.

The course is currently planned to operate on a hybrid basis with the opportunity to undertake group discussions, polling and activities for delegates who are both face to face and remote to ensure that interest and involvement is maintained.

This practical one-day course for managers and staff will serve as an introductory/intermediate overview of the regulatory issues and business challenges of Conduct Risk within this sector.

Key Learning Objectives:

• Confirm your understanding of the current regulatory landscape in the UK and the FCA’s approach to Conduct Risk
• Understand what Conduct Risk is and its component parts, and how the culture within an organisation can affect it
• Become familiar with the Conduct Risks identified by the FCA and consider them in the context of your firm
• Describe an approach to developing a Conduct Risk framework and identifying the right
• Conduct Risk KPI’s for your organisation
• Know the key business functions that are affected by Conduct Risk and be able to define typical risks that might exist in each area
• Explain the individual responsibility and accountability to the current Conduct Risk agenda based on the regulatory status of the individual

09:30 Introductions & session objectives

09:45 Getting up to speed with the FCA’s current approach to Conduct Risk

FCA – Strategic & Operational approach
FCA Conduct Risk Outlook
The year ahead – Themes & Events
Historically identified Conduct Risks, crystallisation and regulatory action

10:30 Treating Customers Fairly & Conduct Risk – Joined up thinking and approach

Treating customers fairly – regulatory expectations
What changes when you introduce Conduct Risk?
How do I consider TCF against each potential Conduct Risk a firm might have?
CASE STUDY 1

11:15 Tea/Coffee Break

11:30 Conduct Risk under the microscope So, what actually is Conduct Risk?

Why are the FCA so focused on it currently?
What is seen as the key conduct risks for the financial services market place in 2018/2019?
What are the key risks for your sector?
SYNDICATE EXERCISE 1

12:15 Conduct Risk – The component parts

What areas of your business are touched by Conduct Risk?
Different risks, different business areas?
Different risks, different approach?
Different business models, different framework?
The behavioural impacts of Conduct Risk
SYNDICATE EXERCISE 2

13:15 Lunch

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

13:45 Culture and the impact on Conduct Risk

What is culture?
How does it become defined within a business?
What impact do leadership actions have on culture?
How do we know when our culture is negatively impacting our business?
CASE STUDY 2

14:30 Conduct Risk Management & MI

What research is out there as to effective approaches?
What different approaches could you use?
How complex does it need to be?
How do I implement a framework and who should be involved?
How do I evidence effective Conduct Risk Management?
What MI might I need?
How and to whom should this be presented?
CASE STUDY 3

15:30 Summary and Close

John Williams

John has worked as an independent consultant within Financial Services for 10+ years providing regulatory advisory support and training solutions across retail distribution, banking, wealth management, insurance and consumer credit sectors. Prior to that he was Head of HR & Training at a major insurance group based here in the UK.

John has provided consultancy support covering board evaluations, culture, conduct, director skills audits, Approved Persons responsibilities, regulatory interview preparation, T&C Scheme development and implementation, and section 166 remedial actions projects to name but a few.

Simon Griffiths

Simon has been advising Boards, Board Risk Committees and senior management teams for a number of Tier 1 financial service firms over many years. Simon has held a number of senior risk positions within the retail and commercial banking sector focusing primarily on operational and regulatory risk management. His background also includes financial management and corporate treasury.

Simon also acts an External Examiner, Assessor and Masterclass tutor for a number of internationally recognised professional postgraduate diplomas as well as designing and delivering external and in-house business briefings for third party clients.

IA Member £645.00 +VAT
Non-Member £795.00 +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 virtually) to solely virtual delivery, should government guidance require.