Why Employ Governance Connect?

Quite simply to avoid Conduct risks becoming Issues, funds being forced to Close, Fines and client Restitution.

Governance Connect was set up to work with firms on having the appropriate Systems and Controls in place, to avoid (conduct) risks emerging, which if not detected could turn into issues and a negative outcome for a client, the firm (brand) and the market (market abuse).

Governance Connect can work on single issues, but we would recommend that an asset manager goes through a full Due Diligence health check, that can help identify areas, departments, policies and procedures for enhancements to allow continued good “customer outcomes” and comply with SYSC 2 and SYSC 7 (Corporate Governance, Committees, Terms of Reference, Management Information).

If required, Governance Connect can work with firms to make sure that processes are in place; from having a functioning Risk Management Policy and a process in place to identify conduct risks before they become issues and the FCA starts knocking on the door. Making sure the asset manager is on the right side of regulation.

The Danger of Omitting to Review Internal Departments

By omitting to review departments, processes, systems, controls and culture can lead to Conduct Risks and poor customer, business and market outcomes. The knock-on effects are for the FCA to force firms to spend time and take resources away from positive business aspects to be used on:

Risks
Issues
Re-building the brand
Fire-fighting client retentions
Lost business and an inability to get new business
Breaches
Regulatory oversight, fines and censures
Products being suspended and closed
FCA direction to NOT undertake certain types of lucrative propositions
Costs, Time and Money affecting profitability and business viability

Who is Accountable for a Lack of Governance – the CEO?

Within your firm who is responsible for joining the dots up between the various oversight functions, such as Compliance, Risk, Audit, Management and the Board - to make sure that the above negative risks and dangers do not occur?

Governance Connect has been specifically set up on the back of a desire to help financial institutions and people:

Create good customer outcomes
Prove that their products and services can be audited in terms of value for money
To keep the regulator and other oversight organisations at bay due to a good governance framework and internal oversight controls

Senior Managers and Certification Regime - all the above can also help with making sure a firm is in compliance and can prove compliance with the SM&CR.