Compliance tip: Managing emerging conduct risks

Financial advice-planning-advice-cashflow-analysisThe advice sector is on the cusp of a major regulatory shift, set to change customer behaviour and market conditions. Firms need to focus on three core areas to ensure they remain competitive and effectively meet regulatory obligations, particularly as new conduct risks emerge.  


Culture plays a key role in effectively adapting to future changes. An effective culture, which has the customer at the heart of all business decisions, will enable firms to react in a customer-centric manner and continue to deliver positive outcomes.

A positive culture also drives more effective compliance and improves the efficiency and accuracy of conduct risk management by providing a holistic view of the company, rather than viewing risks in silos.


Robust governance is essential for all financial services companies. It plays a particularly important role in times of change and uncertainty. Driven by the right culture, governance structures should ensure that decisions are made in customers’ best interests and provide the senior management with greater visibility of emerging issues and risks. This will enable them to react in a proportionate and timely manner.

Management Information

MI underpins business success in the face of change by supporting better decision making, demonstrating compliance across the business and delivering consistent customer outcomes. To provide value, MI should be comprehensive, collected from a range of sources and be acted on in a timely manner.

Phil Deeks is technical director at TCC


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