215 million reasons to regularly check the ‘health status’ of your business
In 2022 the Financial Conduct Authority issued fines in excess of £215 million to businesses large and small for breaches of their rules and regulations. A significant portion of those fines were attributed to breaches of some of the regulator’s longest standing guidelines, for example – PRIN 2: the 11 principles of business conduct.
So why is this important? In recent times the regulator has been very active in supporting the introduction of a shift in data protection governance with GDPR and this month (July 2023) sees the introduction of ‘Consumer Duty’ which the regulator has launched. They have stated ‘Our new Duty sets higher and clearer standards of consumer protection across financial services, and requires firms to put their customers’ needs first’.
The speed of change and update with which the regulator operates means that stopping on a regular basis and asking yourself ‘just how healthy is my business?’ must become a vital part of your long-term business strategy.
Consider these statements:
We reviewed our business in the last 6 months against the currently applicable regulatory standards.
We ensure that new joiners are fully aware of our business processes and how they relate to regulation.
We retain a fully auditable track record of the updates, changes and/or amends we have made to our business because of regulatory change.
We regularly provide training and communication(s) on current regulator and industry trends and thinking.
We are fully aware and/or prepared for the next round of regulatory change.
If you are not answering each of these statements with 100% conviction and confidence then ask yourself again…‘How healthy is the business?’
Our top tips to help you build conviction and confidence
Make compliance simple and easy - always ask ‘would the customer understand this?’ and ‘would it impact them positively?’.
Build a strong culture of compliance into the fabric of your business.
Increase the profile and volume of communications that relate to regulation - knowledge is power!
Every business has a ‘compliance geek’ so give them the platform and profile to become your business ‘compliance centre of excellence’ - a happy team is a motivated team.
Insurance Support Solutions Ltd can provide a bespoke business health check. It’s a full, independent audit that’s there to support your need to keep the business healthy, but more importantly ensure:
Staff competence
Business stability
You have the peace of mind to continue to grow and expand
Ask us about what is involved, and we will work with you to provide a bespoke business health check that gives you the confidence and conviction to answer those five statements without any hesitation.
And Finally…
What did the insurance broker say when asked whether a business could get any insurance if a volcano near the business erupted? The broker assured them ‘not to worry as they would be well covered’!
