Best Practices for the SMF16 - Compliance Oversight Function

Introduction

This comprehensive training session is essential for Senior Managers Function 16 (SMF16) Compliance Officers and those aspiring to the role because it provides a detailed and practical guide to navigating the complexities of the UK's Senior Managers and Certification Regime (SMCR). Recent regulatory scrutiny and enforcement actions underscore the critical need for SMF16s to not only understand their extensive responsibilities but also to actively foster a robust compliance culture.

You will gain actionable insights into current regulatory expectations impacting SMF16 role holders, ensuring you are equipped with the very latest information. By attending, you will enhance your ability to effectively manage compliance oversight, mitigate risks and embed accountability within your organisation. Failing to grasp these nuances or keep up to date can lead to severe consequences, including personal liability for senior managers, significant regulatory fines for firms, and reputational damage. This course will provide practical advice, tips and solutions to common problem areas, empowering you to improve your daily practices and address common challenges with improved confidence.

What You Will Learn

This course will cover the following:

• Session 1: The Accountable SMF16: Demonstrating ‘Reasonable Steps’
• Understanding Your SMF16 Mandate:
• Quick recap - what SMCR expects from SMF16
• Advise and monitor
• Defining your Statement of Responsibilities (SoR): Practical tips for clarity and managing scope
• Best Practice: Proactive mapping of prescribed responsibilities to your daily activities
• The ‘Duty of Responsibility’: What it means in practice for SMF16
• How to: Documenting ‘reasonable steps’ - creating an effective audit trail for your decisions and actions
• Session 2: Embedding Effective Compliance and Managing Risk
• Practical Compliance Framework Design:
• Streamlining compliance policies and procedures: Focus on clarity and usability
• Best Practice: Designing proportionate and risk-based compliance monitoring plans
• How to: Implementing effective controls and validating their ongoing effectiveness
• Identifying top-tier compliance risks relevant to SMF16 oversight (e.g., financial crime, market abuse, conduct)
• Best Practice: Integrating emerging risks (e.g., cyber resilience, ESG, Non-financial Misconduct) into your risk framework
• Effective reporting and escalation: Ensuring critical issues reach the right people, quickly
• Session 3: Culture, Conduct & Regulatory Engagement
• Fostering a Proactive Compliance Culture:
• The SMF16's role in championing ethical conduct: Leadership actions
• Best Practice: Encouraging a /speak-up/ culture and effective whistleblowing processes
• Practical oversight of the Certification Regime and Conduct Rules application
• Strategic Regulatory Interactions:
• Preparing for supervisory engagements: What to expect, how to prepare concise answers
• How to: Responding effectively to regulatory requests for information and findings
• Best Practice: Demonstrating continuous improvement and adaptability to regulatory changes