Governance, Governance, Governance
Three Reasons why people seeking NED positions need to invest in their development: 1. Governance 2. Governance 3. Governance
Since Tony Blair styled his Education speech back in the 90’s, ‘Education, Education, Education’ became widely used but to us at ZISHI Cornerstone we have taken our Governance version as bit of a battle cry. We look at trends, consider the direction of travel for regulated firms and seek to keep our clients and contacts up to speed with changes that will and could impact them.
This is why with our colleagues at Mosaic NED, one of our activities is to help support those seeking NEDs positions, specifically in the Asset and Fund Management space. Here are the 3 reasons why the battle cry is important and why we hope you will join us on our forthcoming programme of 8 half day workshops (plus other benefits for perspective or newly appointed NEDs) during November 2022. Click here for details of our next course.
Governance – The Regulator knows what they expect of NEDs (as well as Senior Managers), so avoid the potential individual fines
The recent FCA’s £531,000 fine of Sigma for failing to report 56,000 CFD transactions. On the face of it, many will have dismissed the headline thinking “well that couldn’t happen here… we’re not that sort of business”. But scratch below the headline and read the basic things that the Chair, who was fined individually £83,600 (!), had failed to ensure;
- Board meetings were held with sufficient regularity to enable the Board’s effective oversight of the business;
- Board minutes, sufficient to record the matters discussed and decisions reached, were maintained;
- he, and the other members of the Board, were provided with adequate MI to enable the Board to properly oversee, understand, and, where appropriate, challenge the business activities;
- an adequate risk assessment was undertaken prior to the commencement of business activities
Governance – how to answer the basic question as a NED or Senior Manager “what does good governance and Governance escalation mean to you”
It’s all about good governance principles – Right structure, Right Culture, Right People, Right Processes, Right Risk Management, Right Oversight = Good Governance. It’s not just the Execs who have to get this right, it is also the Non-Execs too. NEDs need to be able to challenge on any of these and to hold Senior Execs to account.
Governance – your role in delivering the Consumer Duty obligations
Manufacturers need to conduct a forensic review of their products and distribution strategy. If the business can’t convince the NEDs they have it right, they won’t convince the regulator. Remember a NED is expected to be the Consumer Duty Champion, you need to understand the drivers, construction and outcomes of the Duty. If you were put on the spot could you outline, for example the application of PRIN 12 or the 4 outcomes?
We want to encourage NEDs from all disciplines and backgrounds and the regulator wants that too. Our Mosaic NED course is designed as your starter toolkit – a springboard development programme – which evidences your commitment to getting this right. Get in contact today if you want to find out more and please share with candidates who could and want to be NEDs.
CPD Accredited Programme: MOSAIC NED - INEDs in Asset and Fund Management | Date: 9th November - 1st December | 8 half days (29 CPD Hours) | Location: RemoteBook now
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