Following the Rules

Today’s guest outlines the changes he believes are necessary to future-proof both the UK’s finance regulator the Financial Conduct Authority and the country’s top prosecution agency the Serious Fraud Office. And explains why it’s vital for the two organisations to begin working together more effectively. He also discusses how the UK’s accountability regime for senior City staff could be improved, where the City needs clarity from the government as to its Brexit plans and plenty more in between. Matthew Nunan spent six years as a case controller at the SFO, and seven years at the FCA, where he was latterly ran the regulator’s wholesale enforcement department, before moving to US bank Morgan Stanley as head of conduct risk for Europe, the Middle East and Africa in 2014. Since 2020, he has worked a partner in the dispute resolution practice at law firm Gibson Dunn. 

Today’s guest discusses his tenure as chair of the UK finance regulator the Financial Conduct Authority including his highs and lows in the role, and his advice for those now running the watchdog. He also outlines what unfinished business he had on leaving the FCA, and in doing so explains why “the time is now” for UK policymakers to do more to stamp out financial exclusion in the country. Charles Randell spent 24 years as partner in the corporate finance practice at law firm Slaughter and May and was the lead external lawyer for the government during the global financial crisis before joining the Bank of England in 2013 as a member of the Prudential Regulation Committee and then becoming chair of the FCA in 2018. He left his post in 2022 and has since worked as a Visiting Fellow in financial services regulation at Queen Mary University of London.

As UK watchdogs continue their drive to stamp out aspects of poor culture within the financial services sector, those tasked with responding to the many ongoing and upcoming regulatory requirements can easily feel overwhelmed. Today’s guests outline what financial services bosses and board should do to cut through the regulatory noise while still building ethical organisations, as well as the common mistakes they should avoid. They also detail the regulatory changes they would like to see emerge from the government’s latest package of proposed Brexit reforms and they discuss the questions they would like to see UK lawmakers answer as they seek to map out the City’s future outside of the EU. Jan Putnis is a partner at law firm Slaughter and May, where he oversees its Financial Regulation Group and co-Heads its Financial Institutions Group. Roger Miles is a behavioural risk expert with a PhD in the psychology of regulatory design. Since 2016, he has led lobby group UK Finance’s Conduct and Culture Academy as it’s co-founder and faculty leader.

Today’s episode is a deep dive into the culture of the UK’s top financial watchdogs: the Financial Conduct Authority and the Prudential Regulation Authority. In it, I reveal that the FCA received 38 allegations of bullying, harassment racism and discrimination taking place within its ranks in 2020, 2021 and 2022, while the PRA received three such reports from amongst its workforce over the same time period. Together with today’s guests, we discuss the action the FCA and PRA should take as a result of these allegations, how news of these claims could affect regulators’ efforts to police similar misbehaviour amongst finance workers and plenty more in between. Penny Miller is a partner at law firm Simmons & Simmons, and heads their global financial services regulatory practice. Christian Hunt’s career includes stints as chief operating officer at the PRA and global head of compliance and operational risk at UBS Asset Management. Since 2019, he has run Human Risk, a consultancy and training firm specialising in advising company bosses on behavioural science, ethics and compliance, and a top-rated podcast of the same name. --- In response to the topics covered in this podcast, a spokesperson for the FCA said its staff were passionate about *its work and making the FCA the best organisation it can be.  "We have a culture where people feel they are able to speak up and raise issues if they feel they haven't been treated correctly," the spokesperson said. "As the stats show, where concerns are raised we investigate them thoroughly and fairly." The spokesperson added: "Non-financial misconduct is unacceptable and we will continue to raise it as an issue with firms." A spokesperson for the PRA declined to comment. 

Today’s guest outlines how she expects financial services bosses and the policymakers setting their rules will adapt to a “paradigm shift” in global geopolitics that will see China get increasingly assertive, US more protectionist and Russia more aggressive. She details the investment opportunities that she believes will arise from these changes to geopolitical dynamics and the likely regulatory reaction to that. And she explains how finance companies can prepare now for a “mega” 2024 in which the UK will likely see a change in government, the US could be navigating a return of President Trump and Mexico, India, South Africa, Russia, Ukraine and the European Parliament will also be holding elections. Tina Fordham is a geopolitical strategist who has spent two decades advising prime ministers and bosses at some of the world’s largest financial institutions, as well as institutional investors and the United Nations about the implications of global political, security and socio-economic developments. Her career includes stints at US banking giant Citigroup and political risk consultancy Eurasia Group. In 2022, she founded Fordham Global Foresight, an independent consulting firm, where she advises UK and European boards and bosses on macro geopolitical changes affecting their businesses.  

Today’s guests detail the opportunities they believe that lawmakers missed when drafting their plans to regulate crypto-assets in the UK. They explain how financial services regulation could be improved if the industry’s watchdogs did more to integrate technology underpinning crypto-assets into their operations. And they offer advice to compliance and regulatory execs looking to make the jump from working in traditional finance to roles within crypto. Andrew Henderson has spent two decades in financial services law. Since 2022 he has worked as a partner in law firm Goodwin Procter’s private investment funds and financial industry practice, where he advises companies on financial services regulation and risk management as well as on fintech and cryptoassets. Alex Royle is a former trader who spent five years working for UK and EU regulators before moving into crypto. Since 2022, he has worked as head of compliance and regulatory affairs for Europe, the Middle East and Africa at the crypto-focused investment bank Galaxy Digital.

Today’s guest outlines what City bosses are getting wrong in their efforts to improve the culture of the organisations under their management. He explains the anthropological tools that financial institutions’ boards and leaders could use to both better understand the causes of - and prevent - bad behaviour amongst their employees.  And he outlines how he believes both UK regulators and UK regulation needs to change in order to improve conduct within the financial services sector.  Roger Steare is known professionally as the Corporate Philosopher. He has spent two decades advising the bosses and boards of some of the UK’s largest financial services companies and financial regulators on how to build ethical organisations.

Today’s episode is a special one produced in association with Clausematch, a regulatory technology company providing financial services companies in the UK, US and Asia with solutions to address challenges within policy management and regulatory change. Today’s guests call on financial services regulators globally and the companies they supervise to work together now to automate the processes around changing and implementing rules. They also explain how a first-of-its-kind project that they’ve been working on could not only help to kick start an industry drive to digitalise regulatory change, but also fundamentally reshape compliance processes and resourcing at financial services companies at a time when regulatory change programmes are  is only getting more complex time. Evgeny Likhoded is CEO and founder of Clausematch. Aleksandra Wawrzyszczuk is head of LawTechUK, a government-funded programme driving innovation in the UK’s legal sector. 

Today’s guest outlines how the UK’s markets watchdog is adapting the way it works and resources its teams to ensure it is fit to meet its ever-expanding remit. She calls on City workers to be “a bit more understanding” about the Financial Conduct Authority’s limits as it navigates this growing to-do list, to speak out if the regulator is “getting something very, very wrong” and for finance bosses to speak up if they want to find a way for their employees to help the FCA with its workload. She also discusses what changes the FCA wants to see amongst the financial services companies and individuals it supervises and the cultural red flags that the watchdog is “most sensitive to”. Emily Shepperd worked as director of customer services and change at pensions group Aegon UK, and as chief operating officer for Europe, the Middle East and Africa at Bank of New York Mellon before joining the FCA in early 2021. Since then, she has led the FCA’s authorisations division, which the regulator describes as “the gateway” for firms and individuals aiming to work in finance. In 2022, she added the role of FCA COO to her remit and took on responsibility for future-proofing the regulator via its transformation agenda.

Today’s episode is a special one produced in association with Smarsh, a US-headquartered technology firm providing global financial services companies with the tools to capture, store, and monitor their communications. Today’s guest outlines why it’s imperative that regulators and the financial services firms they supervise work together now to determine industry best practice for modernising compliance. He also explains how it’s possible for City firms to continue to prioritise innovation in their back office in today’s tough economic environment. And he details the common mistakes finance bosses must avoid when seeking to more closely track their employees’ mobile communications amidst a widespread regulatory clamp down on firms’ use of monitoring encrypted messaging apps like WhatsApp.  Goutam Nadella oversees technological innovation and commercial strategy as Chief Product Officer at Smarsh.