Client Background

A London based asset manager had experienced unprecedented growth following a number of business acquisitions and a change in control.

Business Issue

As an expanding business the firm had acquired overseas branches. The board of directors wanted to ensure its Governance, Risk and Compliance infrastructure was adequate. The nature, scale and complexity of the business had changed following the acquisitions. The firm was also cognisant that it should consider how it best address conduct risk issues.

Challenge

The board of directors wanted to understand:

  • The quality and resilience of the governance structure;
  • The conduct risks faced by the firm; and
  • The adequacy of the risk, compliance, financial and management controls in place.

Solution

Complyport reviewed the Governance, Risk and Compliance framework. The review included:

  • A review of the overarching governance framework, its supporting processes and related board procedures;
  • A review of the terms of reference for management committees and associated sub-committees;
  • A review of the outcomes of risk assessments;
  • A review of the compliance processes and procedures;
  • A review of the firm’s approach to capital and liquidity adequacy; and
  • Interviews with senior management.

A report summarised findings and offered suggestions for improvement.

Business Benefit

Areas of potential weaknesses, where the Governance, Risk and Compliance framework could be strengthened were quickly identified, allowing the firm to prioritise its response. The firm was able to put in place actions based on recommendations for improvement. The independent nature of the review, and ability (through using Complyport) to set the firm’s experiences against others in the industry gave it confidence in its direction. For interested investors, the independent review was a welcome addition in terms of their own due diligence.

Further Information

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