Financial crisis and more stringent regulations have shed light on deficiencies in the internal governance and control in financial companies. The ultimate responsibility is on the board, and many members have not been living up to the obligations, to have a good knowledge of the business and its risks, in order to make informed decisions.
New rules from 2015 gives the FSA right to issue sanctions against individuals, such as members of the Board and CEO of credit institutions and investment firms. Sanctioning fees can be as high as 5 million Euro in an individual case. Corresponding rules are about to be introduced for fund companies as well, and a similar mindset exists for insurance companies through the Solvency II regulation. Other industries are also moving towards increased responsibility for individuals on the board and in senior management positions.
Senior executives therefore need to ensure that companies meet the responsibilities that regulations impose on them. There is often significant uncertainty around what needs to be done and how extensive the work necessary to achieve the requirements are. The challenge is to find a good balance and efficiency in one’s professional conduct, in order to maintain a sound governance from a regulatory perspective and at the same time run the business profitably and according to set development plans.
FCG has specialist with extensive experience in internal governance and control. Our consultants provide advice, support and training to the Board, President and senior executives of financial companies in various fields. We offer the following services:
- Consulting and Training
- GAP-analysis and implementation
- Controls and validation
- Audit and second opinion