Beginner's Guide - Kind Consultancy

What is the Financial Conduct Authority? – A Beginner’s Guide

27 July 2020

The Financial Conduct Authority (frequently abbreviated to FCA) is the UK’s financial regulator, funded by the Financial Services industry and operating independently of the government. The FCA regulates all businesses providing financial services in the UK, both retail (financial services provided to consumers, individual people, small businesses) and wholesale (financial services provided to large businesses, other financial services organisations and banks).

Alongside the Prudential Regulation Authority and the Financial Policy Committee, the Financial Conduct Authority sets the rules and requirements for the Finance sector, deciding on minimum standards of service, the requirements of specific products and how Financial products can and cannot be advertised.

The FCA was created as part of the Financial Services Act of 2012, which came into effect on April 1st 2013. Following the fallout of the global financial crisis, there was a need to rethink and restructure how Finance was regulated, and this led to the FCA replacing the Financial Services Authority (FSA) which was itself previously known as The Securities and Investments Board (SIB), and some people will incorrectly refer to the FCA by these old names.

Not all Financial products and services in the UK are regulated, but the vast majority are. If an organisation is suspected to have broken the rules, the FCA has the legal power to investigate and fine both individuals and businesses, to require a firm to be assessed and reported on by a regulatory expert, to freeze assets, to ban products and to demand promotional materials be retracted or amended.

Certain roles in regulated businesses with significant regulatory responsibility must be carried out by a person approved by the FCA, who will ensure that they believe the person in that role has the knowledge and skills required to ensure the business rns in a compliant and legal manner.

The FCA is an industry regulator, and is funded by fees paid by Financial Services businesses. It should not be confused with the Financial Ombdusman Service (FOS) which represents Financial consumers – find out more about that here.

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This blog post is part of the Kind Beginner’s Guide series. Kind Consultancy works with Governance, Risk & Compliance professionals at all levels, from Analysts to Chief Risk Officers. For entry-level GRC professionals or graduates who are thinking of setting out on a GRC career, we wanted to provide a Beginner’s Guide to some of the big titles, terms, and acronyms that are used all the time. If you’re a newcomer to Governance, Risk & Compliance space, this could be the first time you’ve heard of “SOX”, “AML” or “Conduct Risk” and we want to give you the information you need to quickly understand these concepts.

If you’re just setting out on your Governance, Risk & Compliance career journey, we’d also recommend our Candidate Guides with top tips on job searches, interview techniques, and more. Follow us on LinkedIn and bookmark our jobs page to make sure you know about all of our latest opportunities.

If you’re an experienced Compliance and Regulations professional and are searching for your next permanent role or interim contract, have a look at our current opportunities or get in touch on 01216432100 or info@kindconsultancy.com – we often work on high-level projects we can’t advertise so don’t be put off if nothing on the website fits what you’re looking for, we may have the right next move waiting for you.

If you’re a client and are in search of your business’s next great Compliance Manager or Chief Compliance Officer with expert-level knowledge of the FCA, contact us now on info@kindconsultancy.com or 01216432100 for a confidential conversation.

What Is An MLRO? – A Beginner’s Guide

21 July 2020

What is an MLRO? The acronym stands for Money Laundering Reporting Officer, but what do they do and how do they fit into Governance, Risk & Compliance?

Since 2007, all regulated Financial Services businesses have been required to appoint an MLRO. The Money Laundering Reporting Officer oversees an organisation’s AML (Anti Money-Laundering) systems and is the main point of inquiry for any queries or issues relating to anti money-laundering activity. MLRO’s carry a significant amount of responsibility – they must quickly disclose any detected money laundering activity to the appropriate authorities, and if their company is found to not have effective AML systems in place, the MLRO will personally face substantial fines and potentially even a prison sentence. Because of this high level of personal accountability and the crucial role they play in combating money laundering, MLROs must be approved by the Financial Conduct Authority (FCA), the main regulator of Financial Services businesses in the UK. There could also be a serious impact on the wider business as the FCA investigated their AML failures, so the MLRO is a crucial central point in any Financial Services organisation’s Governance, Risk and Compliance programme.

In terms of what they do day-to-day, MLROs will design, review and improve Anti Money-Laundering policies and procedures, keep records relating to AML systems and any identified or suspected breaches, make sure that staff are performing the necessary screening on clients, customers and transactions, and staying informed and up to date on the latest risks. MLROs will report to senior management on the business’s risk of exposure to money laundering, and what steps can be taken to mitigate it. In some organisations, MLROs may also be involved in identifying where there’s a need for AML training.

An MLRO is a very senior position, usually director level, and while there are multiple career paths that might lead someone to become an MLRO, most often it will be someone who has begun working in AML at the onboarding and screening or analysis level, been promoted to a Financial Crime position with management responsibilities and then been appointed to MLRO. There are other routes to becoming an MLRO, but the high level of responsibility, authority and specialised knowledge required mean anyone who wants to be appointed and approved as one will need to be able to demonstrate a wealth of Financial Crime and AML experience and understanding.

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This blog post is part of the Kind Beginner’s Guide series. Kind Consultancy works with Governance, Risk & Compliance professionals at all levels, from Analysts to Chief Risk Officers, and for entry-level GRC professionals or graduates who are thinking of setting out on a GRC career, we wanted to provide a Beginner’s Guide to some of the big titles, terms, and acronyms that are used all the time. If you’re a newcomer to Governance, Risk & Compliance space, this could be the first time you’ve heard of “SOX”, “AML” or “Conduct Risk” and we want to give you the information you need to quickly understand these concepts.

If you’re just setting out on your Governance, Risk & Compliance career journey, we’d also recommend our Candidate Guides with top tips on job searches, interview techniques, and more. Follow us on LinkedIn and bookmark our jobs page to make sure you know about all of our latest opportunities.

If you’re an MLRO yourself and are searching for your next permanent role or interim contract, have a look at our current opportunities or get in touch on 01216432100 or info@kindconsultancy.com – we often work on high-level projects we can’t advertise so don’t be put off if nothing on the website fits what you’re looking for, we may have the right next move waiting for you.

If you’re a client and are in search of your business’s next MLRO, contact us now on info@kindconsultancy.com or 01216432100 for a confidential conversation.

What is the Financial Ombudsman Service? – A Beginner’s Guide

20 July 2020

The Financial Ombudsman Service is an organisation that represents the interests of the public where they have a complaint about a Bank or a Financial Services business including but not limited to building societies, financial advisers, investment firms and insurance companies.

When a customer feels they have been mistreated, they will first complain to the company. If they’re not satisfied with the response they get, they can then take the issue to the Financial Ombudsman Service. The Financial Ombudsman Service will investigate the dispute, gathering evidence and independently assessing both sides of the case.

If the consumer accepts the decision reached by the Ombudsman, that decision is legally binding for both parties. If the complainant does not accept the Ombudsman’s final decision, they may then instead take the issue to court, but this will cost them money where using the Financial Ombudsman Service is free.

The Financial Ombudsman Service was set-up in 2000 and granted legal powers in 2001. In 2019 they began accepting complaints from small businesses as well as direct consumers. The organisation is based in Canary Wharf in London. Any Financial Services business in the UK will have a relationship with the Ombudsman and an experienced Complaints professional may have regular contact with them, with some businesses desginated a specific senior member of their Complaints team to handle all interactions with the Ombudsman. Having experience with the Ombudsman is in turn a desirable quality in a Complaints professional working in the industry, as it suggests a good knowledge of handling escalated complaints and an understanding of how to avoid situations where the Ombudsman might decide against a business.

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This blog post is part of the Kind Beginner’s Guide series. Kind Consultancy works with Governance, Risk & Compliance professionals at all levels, from Analysts to Chief Risk Officers. For entry-level GRC professionals or graduates who are thinking of setting out on a GRC career, we wanted to provide a Beginner’s Guide to some of the big titles, terms, and acronyms that are used all the time. If you’re a newcomer to Governance, Risk & Compliance space, this could be the first time you’ve heard of “SOX”, “AML” or “Conduct Risk” and we want to give you the information you need to quickly understand these concepts.

If you’re just setting out on your Governance, Risk & Compliance career journey, we’d also recommend our Candidate Guides with top tips on job searches, interview techniques, and more. Follow us on LinkedIn and bookmark our jobs page to make sure you know about all of our latest opportunities.

If you’re an experienced Complaints Handler, Complaints Investigator or Remediation Officer and are searching for your next permanent role or interim contract, have a look at our current opportunities or get in touch on 01216432100 or info@kindconsultancy.com – we often work on high-level projects we can’t advertise so don’t be put off if nothing on the website fits what you’re looking for, we may have the right next move waiting for you.

If you’re a client and are in search of your business’s next great Complaints professional with good working knowledge of the Financial Ombudsman Service, contact us now on info@kindconsultancy.com or 01216432100 for a confidential conversation.

What is the Financial Conduct Authority? – A Beginner’s Guide

What Is An MLRO? – A Beginner’s Guide

What is the Financial Ombudsman Service? – A Beginner’s Guide

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