Governance remains a top priority for both the European Central Bank (listed as one of the four priorities in 2021) and for the Prudential Regulation Authority (which recommends a supervisory board for third country branches in addition to the requirements applicable to all UK entities).
This starts at the top with the Board of Directors who must be able to steer the organisation
towards success while fully discharging its responsibilities in line with prudential requirements and supervisory expectations.
The ECB enhanced its approach to FAP (Fit and Proper) guidelines (issued June 2021) as a tool to better support improvement in banks’ governance. This greatly underscores the sentiments from regulators, reflected by a quote from José Manuel Campa (EBA Chair): “evidence shows that institutions that had already sound internal governance practices managed the financial crisis better than the one that had such weaknesses”.
A thorough and detailed assessment of the effectiveness of a bank's Board of Directors, covering (i) processes, (ii) roles and responsibilities and (iii) behaviours.
Provide tailored and in-depth coaching and development sessions for the management body. Our senior advisors provide practical knowledge and ensure "peer-to-peer" discussions.
Assessment of individual of Board and Senior Executive positions; support for the "fit and proper" ECB interviews or SMF accreditation (FCA/PRA); diversity analysis and collective suitability.
Using our proven framework, Avantage Reply ensures all relevant elements are assessed.
This is performed by reviewing relevant documentation e.g. Board (redacted) minutes, terms of reference and conducting interviews with Board members.
Avantage Reply could assist as an observer to certain Board and/ or Board committee meetings where specific support is required.
Detailed and practical recommendations are formulated and implementation support can be provided.
At Avantage Reply, we recognise that the demands of governance are continually evolving with regulation becoming more complex and expectations increasing. Our team of experts with deep regulatory knowledge alongside our network of senior advisors with c-level and board experience, duly understand the criticality of these challenges, and how these can be met.
We have pragmatic experience from serving a number of UK, and Pan-European (including US subsidiaries) financial institutions, advising on internal governance, board effectiveness review, competency and suitability assessment. Also, specifically tailored support (including training) has been delivered to Executive Committees and Boards to ensure alignment to regulators’ demands and expectations.