Plenty of other lawyers and commentators have written about the Court of Appeal’s judgment in three recent motor finance cases (Johnson, Wrench and Hopcraft)[1] relating to commissions paid by the lenders to car dealers who acted as credit brokers. Apart from some brief points, I’m going to look at some of the implications of the […]
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Recent motor finance cases and complaints handling
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Tagged complaints, complaints-handling, DCA commission, Johnson, motor finance, motor finance commission, non-DCA commission, Wrench & Hopcraft
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New and emerging non-financial risks – Part 3: Risk management and governance
This is the third and final article looking at new and emerging non-financial risks. It’s concerned with managing those risks and the wider governance arrangements firms will need to have in place. As I’ve said in the previous two articles, increased emphasis by firms and regulators on non-financial risks have made these risks at least […]
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Tagged board, early warning indicators, enterprise risk management, governance, MI, non-financial risks, operational resilience, regulators, risk management, risk management framework
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New and emerging non-financial risks – Part 2: Not the technology-related non-financial risks
Non-financial risks have become at least as important, to both firms and regulators, as financial risks. This is mostly due to the importance of firms’ dependence on IT systems to operate their businesses but regulators (particularly the Financial Conduct Authority – the FCA) are also highlighting non-financial risks arising from newer regulatory topics, adding to […]
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Tagged conduct risk, consumer duty, CP23/20, culture, D&I, diversity and inclusion, FCA, Financial Conduct Authority, financial exclusion, groupthink, non-financial misconduct, non-financial risks, retail customers, risk taxonomy, risks
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New and emerging non-financial risks – Part 1: Technology-related non-financial risks
Non-financial risks have become at least as important, to both firms and regulators, as financial risks. This is mostly due to the importance of firms’ dependence on IT systems to operate their businesses but regulators (particularly the Financial Conduct Authority – the FCA) are also highlighting non-financial risks arising from newer regulatory topics, adding to […]
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Tagged AI, chatbot, concentration risk, contagion, FCA, Financial Conduct Authority, information security, machine-learning, model management, non-financial risks, operational resilience, regulators, technology risks
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Qualitative information and data-driven regulation
Both the Prudential Regulation Authority (the PRA) and the Financial Conduct Authority (the FCA) rely on data for supervisory purposes and Nikhil Rathi, Chief Executive of the FCA, has said that “Data is the lifeblood of a modern regulator and in the next five years, we expect to become as much a regulator of data […]
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Tagged consumer duty, data, data analytics, data science, FCA, metrics, PRA, qualitative data, qualitative information, quantitative data, regulatory reporting, reporting
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Two suggestions for tackling micro-exclusions (with thanks to Adam Grant)
Diversity and inclusion remain high on the regulators’ agenda but their proposals are unlikely to address a trail of demoralising situations I’ve seen in practice. I call these micro-exclusions, the small and subtle actions that result in some being favoured over others, certain voices not being heard and those who don’t ‘get on board’ being […]
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Tagged Adam Grant, brainwriting, culture, diversity, diversity and inclusion, Hidden Potential, lattice management, lattice management system, micro-exclusions, psychological safety, regulators, SMCR, speak out
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The critical importance of fairy dust
Fairy dust – the sparkle that makes a presentation shine; the final adjustments that make the message compelling. It’s a dainty expression for a hard-working ingredient in submissions and presentations to regulators. Forget spin; this is about substance and structure. It might involve: Having a crystal-clear and confident narrative that carries the regulator through the […]
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Tagged meetings with regulators, narrative, presentations, regulators, regulatory visit, SMF interview, submissions
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What makes an outstanding board?
This started as an article about what makes a board of directors ‘effective’ but I decided that was aiming too low. Why shouldn’t a board be outstanding? Let’s begin though with board effectiveness. 1 Board effectiveness What made the board of a bank or other financial institution ‘effective’ a few years ago won’t hit the […]
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Tagged board effectiveness, board of directors, boards, challenge, controls, corporate governance, culture, D&I, diversity, diversity and inclusion, EWI, governance, groupthink, KRI, MI, non-executive directors, strategy
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PREPARING FOR A VISIT BY THE FCA
Visits by the Financial Conduct Authority (the FCA) aren’t as common as they were pre-Covid but they still take place, usually as part of a thematic or sector review. They can be in-person (at a firm’s offices) or take place remotely. They might involve interviews of senior staff (not necessarily SMR senior managers) but there’s […]
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Tagged case review, case run-through, FCA, FCA visit, file review, file run-through
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THE CONSUMER DUTY ANNUAL REPORT: POINTS FOR BOARDS TO CONSIDER
For firms subject to the Consumer Duty, the first annual report is on the horizon and a firm’s board of directors will need to review and approve the report, provide confirmations, carry out assessments and agree actions. The process involves more than simply reviewing and approving a document. The Financial Conduct Authority (the FCA) will […]
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Tagged board of directors, boards, consumer duty, Consumer Duty annual report, Consumer Duty monitoring, consumer outcomes, retail customers, strategy
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