The impact of the new FSA ‘Training and Competence’ requirements upon senior management and the new ‘senior management’ arrangements
| Published date | 01 March 2001 |
| DOI | https://doi.org/10.1108/eb025076 |
| Date | 01 March 2001 |
| Pages | 218-224 |
| Author | Chris Taylor |
| Subject Matter | Accounting & finance |
Journal
of
Financial Regulation
and
Compliance Volume
9
Number
3
The impact of the new FSA Training and
Competence' requirements upon senior
management and the new 'senior
management' arrangements
Chris Taylor
Received: 3rd May, 2001
Director
of
Compliance,
Lombard
Odier,
3
Waterhouse
Square,
142 Holborn,
London
EC1N 2NT;
tel:
+ 44 (0)20
7832
2000; e-mail:
christopher.taylor@LombardOdier.com
Chris Taylor has been working continu-
ously in compliance since 1985 just prior
and wholesale sector within banking,
investment banking and fund management,
principally in TSB and Nat West groups
and more recently as Director of Compli-
ance at Lombard Odier International Port-
folio Management, one of the oldest and
largest Swiss private banks. In addition to
UK responsibilities he has reviewed the
adequacy of compliance arrangements in
many other countries, particularly in the
Far East. He is Chairman of an indepen-
dent IMRO Compliance Officers Discussion
Group and Deputy Chairman of the Securi-
ties Institute Compliance Forum. He is
par-
ticularly interested in developing
compliance culture through the medium of
education and training.
ABSTRACT
This paper is a development of
a
talk given by
the author at a conference in November 2000,
entitled,
'How will T&C
affect
senior manage-
ment? They, in particular, need to comply'.
It examines and comments upon the introduc-
tion of and the interaction between the new
'Training & Competence' and 'Senior Man-
agement' arrangements that the Financial Ser-
vices Authority will introduce at N2 which is
expected to be no later than the end of Novem-
ber
2001.
BACKGROUND
When the Chairman of Barings infamously
said 'I do not know who is responsible for
what has happened in Singapore ... the
Regulators will have to decide' he scareely
can have imagined what that remark
would lead to.
Apart from the failure of the bank that
bears his name, the whole Barings affair
has been a major influence upon the senior
management arrangements that the new
unitary UK regulator, the Financial Ser-
vices Authority (FSA), will introduce from
N2,
a date somewhere between 31st July,
and
30th
November, 2001.
What emerged from the Barings case
was a lack of clarity of who within senior
management was responsible for what and
an inability on the part of the UK regula-
tory authorities to be able to hold accoun-
table for the failures, those senior managers
who had responsibility for the relevant
areas of the business.
The Labour government caught the
financial services industry unaware in
Journal of Financial Regulation
and Compliance, Vol. 9, No. 3,
2001,
pp. 215-224
© Henry Stewart Publications,
1358-1988
Page
218
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