Managing Conduct Risk under the FCA - 27/03/2019
The Training Environment For Financial Services

Managing Conduct Risk under the FCA

27 Mar 2019, London

9:30am to 4:30pm

Outline & Objectives

Business conduct is in a bright and unforgiving spotlight. Although much has been said about Conduct Risk from the regulatory perspective, less has been done to help firms address the issue coherently. In the absence of anything prescriptive from the FCA, firms need to define what conduct risk means for their business and determine how to take positive action to address this risk. While the primary driver for seeking the effective management of conduct risk is to secure commercial success, there are additional pressures stemming from the ever higher standards being demanded by regulators, both nationally and internationally.

This workshop will address the issues firms need to take into account in order to manage and mitigate conduct risk. It will highlight the key themes in current thinking and 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
  3. Determine how to apply “Treating Customers Fairly” approaches to the conduct risk agenda
  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 individual accountability regime
  7. Embed the mititgation of conduct risk into the culture 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 Presenter: Charles Cattell

Charles Cattell is a consultant and training practitioner with extensive expertise across the financial services sector. He advises, trains and develops a broad range of financial services clients and their senior managers about the human aspects of regulation with a particular focus on managing people risk, the development of competence and expertise and the enhancement of corporate culture. His clients include banks, product providers, intermediary firms, and insurers with whom he works at a senior level on learning, leadership, regulatory and corporate governance issues. Charles also works extensively with trade associations, examining bodies and regulators, whom he has advised on competence and professionalism issues. He is a Chartered Fellow of the Chartered Institute of Personnel and Development, a Chartered Member of the Chartered Institute for Securities & Investment and a Chartered Insurance Practitioner and an Associate of the Chartered Insurance Institute.

Course Programme

Session Content
What is meant by “conduct risk”
  • Defining conduct risk
  • The parameters of conduct risk
  • The core focus of delivering client and customer expectation
The regulatory framework and approach to conduct risk
  • Risk-based regulation (principles vs rules)
  • Getting the business to “do the right thing”
  • Exercising judgement responsibly
  • Empowering operational staff to take decisions
  • Supervision and enforcement in relation to conduct risk
Business models and governance of conduct risk
  • The significance of sustainability
  • Securing effective governance and controls
  • Stress testing and managing contingencies
  • Orderly closure and wind-up
Conduct risk and “Treating Customers Fairly”
  • Delivering on promises and rebuilding trust
  • TCF mark 1 in hindsight
  • Applying the broader fairness agenda across the business
  • Fairness as the start point for conduct risk mitigation
  • Clarifying who is the customer
Tangible elements of conduct risk: product design, distribution and organisational infrastructure
  • Customer needs and risk exposures across the product life-cycle
  • Matching product design to target markets
  • Addressing conduct risk issues during and after sales
  • Securing understanding about the needs and expectations of end users throughout the distribution chain
  • Building conduct risk into service level agreements
Practical aspects of managing and monitoring conduct risk
  • Taking the cultural temperature
  • Systems, controls, assessment and oversight of actual performance
  • Conduct risk indicators and measures
  • Recognising, highlighting and escalating problems
  • Anti-money laundersing and politically exposed persons

Behavioural aspects of conduct risk: leadership, conflicts of interest, people risk and organisational culture

  • Developing a culture that mitigates conduct risk
  • Conduct risk, governance, leadership and supervision
  • Securing competence, capability and expertise
  • Rewarding and incentivising desired behaviours
  • Identifying and managing conflicts of interest
Conduct risk and individual accountability
  • Senior management accountability
  • Conduct risk from the perspectives of material risk takers and significant harm functions
  • Conduct risk and the certification of fitness and propriety
  • Embedding the Rules of Conduct throughout the firm


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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