Is your business prepared to be examined for Conduct Risk?
In its business plan for 2024, the JFSC confirmed it will be placing a renewed emphasis on conduct risk. Including through on-site examinations.
What is Conduct Risk?
While there is no single definition, conduct risk has its origins in consumer protection. Most regulators place responsibility on businesses to identify the potential risks posed to customers and market counterparties and to establish and maintain appropriate standards for the conduct of their activities. In Jersey, the JFSC will have regard to relevant Orders and the Codes of Practice. Generally, the scope of activities captured will depend on the business and the context in which it is operating.
Are businesses facing greater exposure?
Much has changed since the JFSC last focused on conduct risk. Examples include: the local and international operating environment; remote working; increased consolidation and PE ownership; skills shortages; increased outsourcing; and an ever-greater emphasis on IT solutions. The JFSC is aware of these factors and will doubtless be assessing their impact.
How can Oben help?
Oben has developed a dedicated Conduct Risk Review product which provides an independent perspective on your businesses culture and the measures in lace to address conduct risk. Topics reviewed include leadership; competence; accountability; customer understanding; customer engagement; and oversight. Aside from being valuable corporate governance measure, the Conduct Risk Review will help you to prepare for a JFSC conduct risk visit.
If you would like to discuss this topic in further detail or if there is any other issue where we may be able to assist, please do not hesitate to contact one of the team.