The Training Environment For Financial Services

Risk Based Compliance Monitoring under the FCA

Course Outline and Objectives

Today, Compliance managers are under more pressure than ever to make sure they are targeting risks, and resources, as effectively as possible and adapting their monitoring to the changing regulatory environment. Yet despite their best efforts, many firms continue to face action or have significant failures of controls. Monitoring is too often approached as a mechanistic task focused on rote compliance, not the “outcomes” on which the FCA is focused.

Through extensive use of practical examples, attending will help Compliance and Monitoring professionals identify the principle compliance risks in their business and design and execute a risk based compliance monitoring plan accordingly.

Attending this practical workshop will help you:

  • Demonstrate the effectiveness of your controls to the regulator
  • Effectively identify, categorise and prioritise compliance risks
  • Explore the use of Key Indicators for risks and controls
  • Examine monitoring techniques (desk based, exception reporting, systems, visits); and know how to select the most appropriate option
  • Determine when to escalate issues and change monitoring levels
  • Construct a comprehensive compliance monitoring plan that will prioritise risks and drive out resource requirements, leveraging FCA tools like the “Conduct Risk Framework/Journey”
  • Tailor your reporting to different groups to make sure critical messages are received and understood
  • Keep your programme up to date: respond to monitoring results emerging regulatory hot spots
  • Develop both your technical monitoring and ‘softer’ skills set: establishing credibility, obtaining buy-in, managing resistance

Who will benefit?

This focused workshop has been designed to help less experienced Compliance and Monitoring staff develop their capabilities and skills and for more seasoned Compliance Managers to refresh and update their approach. It will also be of benefit to Risk and Audit professionals who wish to improve their knowledge of compliance risk management.

Training Approach

The course programme will comprise a blend of trainer presentations, group discussion, practical examples and case studies. There will be ample opportunity for questions, experience sharing and networking. All course materials (and at face-to-face events, refreshments and lunch) will be provided.

Workshop Leader

Gary Pitts has over 25 years of compliance experience in the UK and overseas, including spells in regulation, asset management, investment banking and as managing partner of a boutique financial services house. He was a director of Cayman and Luxembourg domiciled hedge funds, as well as regulated companies in the UK and South African has been an FSA/FCA registered person in Controlled Functions 10 and/or 11 since 2001. He now runs his own governance and regulatory consultancy:  Tetractys Partners LLP.  Gary is a regular conference speaker and author of technical articles on compliance related topics and sits on the regulatory advisory group of the Journal of Securities Operations and Custody. He brings a combination of compliance and commercial experience, in terms of both practical implementation and Board level oversight, to the training he delivers.

Programme Outline

Session Aim Content
The risk based monitoring approach To establish a common understanding of this term
  • The definitions of risk and compliance risk
  • The requirements for risk management
  • The responsibilities of risk, audit and compliance compared – drawing the boundaries
Latest regulatory developments in risk based monitoring To review the FCA’s approach and explore how the regulator's techniques can be applied in your firm
  • Risk based approach
  • Current hot topics
  • How the risk register informs compliance
  • CASE STUDY – using the profile of a typical firm to identify the key risks from a regulator's perspective
Researching the risks facing your firm To identify the data within the firm that will inform your monitoring regime
  • CASE STUDY - categorising  compliance risks
  • Prioritising the likely areas of impact and likelihood
  • Building the rationale for your approach
Preparing the monitoring plan To know how to create a plan that will reflect risk priorities and drive out resource requirements
  • The structure of the plan
  • Defining KPIs and setting goals for the firm
  • Establishing activities and populations for monitoring
  • Deciding on the appropriate monitoring tools
  • Setting hurdle point for escalation of issues and change sampling levels
  • Estimating resources
Reporting results To structure a report format that communicates the priorities
  • Typical contents of the report
  • Seeing the “wood for the trees”- layering information
  • CASE STUDIES - explaining the implications and recommending remedial actions
Remedial monitoring To respond to monitoring results and adjust the compliance plan
  • When enhanced checking becomes appropriate
  • Setting and agreeing new targets and timescales
  • Gaining buy in for changes

This course can be delivered in-house at a time and location to suit your business and tailored to suit your people and organisation. We can also create bespoke training when something very specific is needed.Please contact us to discuss your requirements in more detail and at no obligation.

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