Looking to the Future of SM&CR

The events of the last year have presented significant challenges to Firm’s Board and Senior Management including the execution of their responsibilities under the Senior Manager’s Regime. The approach to undertaking effective oversight, demonstrating reasonable steps and upholding the cultural values within organisations has been tested as the vast majority of staff suddenly moved to home working. As we emerge from the most recent lockdown it seems that increased remote working is here to stay and most firms intend to operate a “hybrid model” of some degree going forward. While this increased flexibility has benefits - to staff morale, retention and the firm’s bottom line - it may require a change in approach from those holding Senior Manager Function responsibilities. In this webinar, BDO will discuss the SMCR implications of the future world of working. We will set out some examples of good practice we have seen over the past year in respect of Senior Manager’s demonstrating reasonable steps and highlight potential challenges and pitfalls.

In this session we will also examine key regulatory priorities and developments through the lens of SMF accountability and oversight. We will consider:

• ESG and the financial risks arising from climate change
• The FCA’s expectations with respect to Stewardship
• Operational Resilience

The session is intended to be interactive and we encourage participants to share their views, through polling and open questions to audience, as we navigate these emerging topics. There is no “one size fits all” approach to meeting the requirements of SMCR and we therefore encourage participants to raise any specific queries they may have on SMCR in the session.

14:00-14:10 Welcome
Sarah Thwaites, Senior Policy Adviser, The Investment Association

14:10-14:55 Looking to the Future of SM&CR
Richard Barnwell, Partner, Risk and Governance, BDO
Shrenik Parekh, Senior Manager, BDO
Claire Rafferty, Senior Manager, BDO

14:55-15:00 Closing Remarks
Sarah Thwaites, Senior Policy Adviser, The Investment Association

In order of programme appearance:

Sarah Thwaites, Senior Policy Adviser, The Investment Association

Sarah has a broad ranging knowledge and experience of the Financial Services industry gained from senior roles in both the commercial and regulatory environment over more than 30 years. She joined the Investment Association in March 2019 as a Senior Policy Adviser, Conduct Risk and Culture, having previous been an independent consultant. She has supported firms with the implementation of the Senior Managers and Certification Regime and Training and Competence. Sarah has also carried out Board effectiveness and culture reviews.

Richard Barnwell, Partner, Risk and Governance, BDO

Richard is a partner within our Financial Services Advisory practice with over 19 years’ experience of working with firms across the financial services sector on a wide range of regulatory and compliance matters. Richard is a Skilled Person and has worked on a number of s.166 reviews dealing with governance, conduct and suitability related matters. He has also managed multiple large scale suitability remediation programmes across the FS sector which have focused on pension transfers, discretionary fund management, annuities and investment advice more broadly.

Since joining BDO in September 2017, Richard has led risk, governance, conduct and remediation reviews for a number of banks, insurers, wealth managers and asset managers. He has worked extensively with wealth managers and asset managers on a range of issues including best execution, conflicts and suitability of advice. Most recently he has been supporting firms in their preparations for MiFID II and SMCR.

Shrenik Parekh, Senior Manager, BDO

Shrenik is an experienced Senior Manager in the Financial Services Advisory team at BDO UK. He is a CFA charter holder with extensive experience of providing risk and regulatory advisory services on a broad range of topics to a number of financial services clients including banks, insurers and investment firms.

Shrenik leads the Governance and Risk Advisory team within Financial Services at BDO which focusses on corporate governance, board effectiveness, SMCR and culture. He has been involved in a variety of regulatory engagements including consulting, secondments and s166 engagements.

Claire Rafferty, Senior Manager, BDO

Claire is a Senior Manager in the Financial Services Advisory team at BDO with a decade’s experience within financial services regulation. Prior to joining BDO in March 2018, Claire spent eight years at the Financial Conduct Authority working in a variety of key functions across the organisation including Supervision, Enforcement, the UK Listing Authority and the FCA’s second line Risk & Compliance Oversight Division.

Claire’s areas of specialism include the application of the regulatory framework for wholesale activities (including MAR, MiFID II, AIFMD and the FRC’s Stewardship Code), corporate governance and SMCR, and conduct risk management. More recently, Claire has become a member of our Financial Services ESG Working Group with a focus on governance and stewardship matters.