Governance, Culture and Accountability: an effective executive

In our recent posts we have focussed on the role of the executive in corporate governance and highlighted just a few of the areas of particular challenge for firms in the regulated sector and their senior executives. 

While the most senior executives will sit on the Board, their roles and responsibilities are distinct from and supplement those of the Board: the need for clarity between the two is examined further in this recent post. Meeting regulatory expectations can be especially challenging where firms operate through a branch structure. Our other posts have focussed on more practical issues: how senior managers can ensure effective delegation of responsibility; key considerations in designing reasonable steps frameworks; how the executive might scrutinise the adequacy of MI they receive to enable good decision making and the challenges of effective information escalation and cascade in complex institutions.

We have so far focussed on firm governance and what might be described as the structural questions associated with that. From mid-June onwards we will turning our attention to culture and conduct: the interplay between these two means that the FCA’s lens is now firmly fixed on firms’ culture and how this is set and measured by firms. Amongst other topics we’ll be examining the impact of an extended period of remote working on promoting a healthy culture and, picking up on a subject first raised in this early post, how diversity and inclusion fits within the regulator’s cultural framework. 

Particular governance and cultural challenges will depend on your firm’s circumstances and the extent of any regulatory scrutiny you may be experiencing. We’d be happy to share our insights on the particular issues arising for you – do get in touch and we can discuss how we can assist.