FCA Compliance - New Conduct Rules for Senior Managers & Non Executive Directors
The FCA have issued a stark warning to authorised firms about their handling of poor personal staff conduct: 'Our message to firms is clear: non-financial misconduct is misconduct, plain and simple.' During 2018, the FCA saw a noticeable upturn in reports concerning issues like discrimination and sexual harassment in financial services.
The FCA have confirmed that non-financial misconduct can amount to a breach of the new Conduct Rules, which include the requirement to act with integrity. Importantly, the Senior Managers & Certification Regime imposes requirements on firms to notify the FCA of Conduct Rule breaches - and in particular the need to do so within 7 days where they involve an organisation’s most senior staff.
All FCA authorised firms must ensure that their staff are trained on new Conduct Rules which come into force in December 2019.
The Conduct Rules set minimum standards of individual behaviour in financial services. They will apply to all employees who perform financial services activities in a firm.
The new rules are a fundamental part of the Senior Managers & Certification Regime, which aims to reduce harm to consumers by making individuals more accountable for their conduct and competence.
Some Conduct Rules will apply to all employees, while others will only apply to senior managers and non-executive directors.
This full day advanced level course will explore the new Individual Conduct Rules, which will apply to virtually all staff, and the Senior Manager Conduct Rules, which will apply in full to senior managers and partially to non-executive directors.
It is suitable for senior managers, non-executive directors, compliance officers and human resources personnel with responsibility for implementing the new training requirements.
For an introductory guide aimed at financial services staff at all levels, please see FCA Compliance for Financial Services Staff - New Conduct Rules Explained.
What You Will Learn
The course will explore each of the following new Individual Conduct Rules and Senior Manager Conduct Rules in detail and take learning points from FCA guidance and enforcement action against firms and senior managers:
- Individual Conduct Rules:
- Rule 1: ‘You must act with integrity’
- Rule 2: ‘You must act with due care, skill and diligence’
- Rule 3: ‘You must be open and cooperative with the FCA, the PRA and other regulators’
- Rule 4: ‘You must pay due regard to the interests of customers and treat them fairly’
- Rule 5: ‘You must observe proper standards of market conduct’
- Senior Manager Conduct Rules:
- Rule SC1: ‘You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively’
- Rule SC2: ‘You must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system’
- Rule SC3: ‘You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively’
- Rule SC4: ‘You must disclose appropriately any information of which the FCA or PRA would reasonably expect notice’
- Discussion forum - The course will provide a forum to discuss how the new Conduct Rules will apply to specific roles within firms.
9:30am - 5:15pm
9:30am - 5:15pm
Please let us know if you wish to be notified when new dates are added for this programme