Managing Conduct Risk under the FCA

Outline & Objectives

Much has been said about conduct risk from the regulatory perspective but rather less has been provided in the form of prescriptive guidance from the FCA. Consequently, firms need to define what conduct risk means in the context of their business and determine how to take positive action to address this risk.

This workshop will address these issues, considering firms’ business models, strategy and culture across the full spectrum of financial services from the perspectives of current regulatory themes and priorities. These include the role of purpose, individual accountability, the Conduct Rules and the forthcoming Consumer Duty. This course seeks to provide practical pointers to help delegates ensure their firms’ approaches and arrangements are as effective as possible.

Specifically, attending will help you:

1. Define the “conduct risks” in your business
2. Understand the FCA’s approach to conduct risk and how it can support the management of conduct risk in your firm
3. Explore the impact of the Consumer Duty on the concept of fairness and the management of Conduct Risk
4. Examine the tangible elements of conduct risk: product design, distribution and organisational  infrastructure
5. Implement techniques to manage the behavioural aspects of conduct risk
6. Identify the steps to managing and monitoring conduct risk, including the role of the Senior Managers and Certification Regime
7. Embed the mitigation of conduct risk in the culture and strategy of your organisation

Who will benefit?

This workshop is aimed at directors and other senior staff involved in establishing and embedding their firm’s culture and in managing the business compliantly. It will also be relevant to Risk and Compliance specialists, along with those responsible for board level oversight of the control functions. This event is equally appropraite for staff for firms which are either solo regulated (FCA) or dual regulated (PRA and FCA).

Course Agenda

Topics covered may include but are not limited to:

• What is meant by “conduct risk”
• The regulatory framework and approach to conduct risk
• Business models and governance of conduct risk
• Conduct risk and teh Consumer Duty
• Tangible elements of conduct risk: product design, distribution and organisational infrastructure
• Behavioural aspects of conduct risk: leadership, conflicts of interest, people risk and organisational culture
• Practical aspects of managing and monitoring conduct risk
• Behavioural aspects of conduct risk: leadership, conflicts of interest, people risk and organisational culture