Risk & Regulatory Risk

Below and on the additional pages in the side bar menu is an introduction to the main areas of Risk in Businesses (particularly financial service companies).  This may be useful if you are new to recruiting in this area.

Risk can be looked at holistically or broken up into various areas but they are often inter-related; we have considered below some main financial services areas falling within our Risk specialism.  It should not be forgotten there are many other risks e.g. technology, Information/Data Loss, Force Majeure etc.

Companies operating in Financial Services will depending on activity and size have to comply with various rules set out by the PRA (Prudential Review Authority) and FCA (Financial Conduct Authority) which were born out of the former FSA (Financial Services Authority).  They will interpret various legislations both domestic European and International where appropriate into their rulebooks.  There are many blocks of rule books for individuals operating in Financial Services, Companies and various business areas (to many to list) but well known ones are:

  • BIPRU –The Prudential Sourcebook for Banks, Building Societies and Investment Firms sets down the detailed rules on ICAAPs, consolidation and all the risk requirements (other than the Fixed Overheads Requirement which is in).
  • GENPRU (General Prudential Sourcebook) overall requirement to have capital resources in excess of the firm’s capital resources requirement and sets out what constitutes capital resources and how different firms should calculate their capital resources.
  • INSPRU (Prudential sourcebook for Insurers) contains the prudential requirements and specific notification requirements for this sector.
  • MIPRU (Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries) contains the prudential requirements and specific notification requirements for these sectors.
  • COBS  Conduct of Business.  The conduct of business requirements applying to firms with effect from 1 November 2007.  
  • ICOBS  Insurance Conduct of Business.  The non-investment insurance conduct of business requirements.
  • MCOB  Mortgages and Home Finance Conduct of Business.  The requirements applying to firms with mortgage business customer.
  • BCOBS  Banking Conduct of Business.
  • CASS  Client Assets.  The requirements relating to holding client assets and client money.
  • MAR  Market Conduct.  Code of Market Conduct, Price stabilising rules, Inter-professional conduct, Support of the Takeover Panel's Functions, Alternative Trading Systems, what is acceptable market conduct and what is market abuse.