CORPORATE GOVERNANCE

Corporate governance is now seen by regulators as a fundamental requirement for authorised firms. Firms need to be able to demonstrate that they have a robust corporate governance framework and Trading Compliance can assist in:

• Formulating the necessary Corporate Governance structure for your firm with board oversight, clear management and departmental structures, the necessary policies, procedures and controls, clear lines of reporting, management information and training;
• Advising on board and committee structure and terms of references
• Director and Senior Management coaching on the corporate framework and the regulatory requirements on such individuals;
• Review and testing of the framework to recommend revision and changes as necessary and demonstrate the firms ongoing development to ensure its framework is functional;
• Providing an objective assessment of how well a firm’s senior management arrangements meet evolving regulatory requirements such as appropriate board composition, directors knowledge and expertise, apportionment of responsibilities, suitable understanding by individual managers, sufficient Management Information, sufficient time allocated to corporate governance; internal communication;
• Instruction for non-executive directors who are viewed by regulators as having a clear role in ensuring a firms corporate structure is sufficiently challenged and tested;
• Ensure directors and senior management are able to clearly evidence effective oversight of their areas of responsibility.

CONDUCT RISK

Trading Compliance has particular expertise in all areas of risk management which the regulators see as fundamental for all authorised firms. With the focus now increasingly on conduct risk, it is essential that firms are able to manage this within their business. We can assist you in:

• Identifying all your key risks that your firm could face, so many of which are overlooked by firms; and draw up a Risk Map and Risk Register;
• Assessing the potential impact those risks could have on your business and help you formulate your firm’s Risk Appetite;
• Design and put in place the necessary Risk Management policies, procedures and controls to avoid or mitigate those risks;
• Ensure a clear documented record and audit trail to evidence your whole risk management process to demonstrate your firm’s oversight and management of risk to regulators;
• Establish Internal Risk Assessment processes to ensure that you have an ongoing assessment and review of the risks to your business and the effectiveness and coverage of the controls you have in place.

We also carry out bespoke project work where you have projects that are important to get done but you do not have the resources to do, such as a backlog of file checks, a business review or a process or procedure that needs to be drawn up or updated, we can do such project work for you, quickly, efficiently and therefore more cost effectively including full delivery and training.
Such reviews can form a critical part of a firm’s overall risk management framework. In doing these we can give you input and advice on current best practice to make sure that you are up to date on the best way to stay compliant.

RISK MITIGATION/REMEDIAL ACTION

Trading Compliance has considerable experience in remedial action for when things go wrong in a firm. We can give expert assistance if your firm is faced with a problem to ensure that prompt and appropriate corrective action is taken as necessary:

• undertaking a review process of current issues and formulating the necessary remedial action
• handling all sensitive matters with all due security and confidentiality
• overseeing the remedial action
• manage the necessary liaison with regulators to keep them up to date with the measures being taken and of any risks outstanding.
• reviewing policies and procedure to identify where there were failings and give recommendations as to how to strengthen them
• provide appropriate training to senior management and staff

Risk Mitigation Programmes

Regulators such as FCA are increasingly viewing Risk Mitigation Programmes (RMPs) as an essential tool in their remedial toolkit. Trading Compliance can assist you in formulating an RMP to identify and rectify any shortcomings or weaknesses in compliance arrangements, and head off more serious enforcement action.
If your firm has been issued with an RMP by a regulator, we can help you to meet its requirements and report back to FCA on progress in meeting targets and objectives.

Skilled Persons Reviews

Regulators have the power to require firms to appoint an independent third party to report on a particular matter. This used to usually be the product of an enforcement review where a problem is discovered, but increasing the device is being used as a standard supervisory tool. However borne, the process can be highly disruptive and highly costly for a firm.
If you are, or believe your firm might be subject to a skilled persons review, Trading Compliance can help you by:

• working with the appointed firm at all stages of the process
• providing an independent opinion on critical issues such as the review’s initial scope
• managing as much as possible the conduct of the review itself
• vetting and challenge on behalf of the firm where necessary the contents of the final report to be provided to the regulator

Disciplinary Action

Trading Compliance is experienced in assisting and advising firms with disciplinary procedures and we can help you through any disciplinary action by:

• Mitigation - to reduce the impact of the disciplinary process
• Enforcement process guidance
• Establishing the facts
• Preparing your case
• Handling the disciplinary process
• Liaise with your other professional advisors
• Deal with the regulator enforcement team
• Avoiding a skilled persons review
• Assisting at any tribunal

We can also resource legal representation by those with the appropriate regulatory tribunal knowledge and experience.