Chapter 2 - Supervisory Principles And Practices Flashcards
Approved Persons
Requirements
SOPI SOC
Skill care and diligence
Open and cooperative with regulator
Proper standards of market conduct
Integrity
Plus for SIF
Skill care and diligence in managing
Organisation and control (eg clear reporting lines, KPI, responsibilities)
Compliance
Senior management responsibilities and certification
What?
When?
March 2016
Banks building societies
Dual firms
Smr will replace SiF . Everyone needs to certificate in their role if in Significant Harm Function
SYSC
Numbers and purpose
SYSC 1 - application and purpose
SYSC2 - senior management arrangements
SYSC3 - systems and controls
SYSC4 - general organisational requirements (roles, resps, structure, reporting)
SYSC5 - competent employee rule
SYSC6 - compliance, internal audit, financial crime
SYSC7 - risk controls
SYSC9 - record keeping
Training and competence
MR CASTN
Maintaining competence
Records
Competence and how assessed Appropriate qualifications Supervising Training Notification requirements
Strategic planning
ACI?
Analysis (situation)
Internal environment
External environment
Competencies
Choices (options) Legal Ethical Stakeholders Stretch or fit?
Implementation
Manage change
Organise
Enable
Planning tools
Name FIVE
Main purpose of each?
Ansoff Matrix - growing a business
Boston Matrix - cost allocation
SWOT - broad analysis of strengths and weaknesses
PEST - external factors and change
Customer Matrix - focus on customer needs/values
Ansoff Matrix
TO THE RIGHT MARKET IN THE RIGHT WAY
Market penetration
Eg efficiencies, scaling, marketing spend, reward/ incentive scheme
Product development
Market development
Eg affinity relationship with trade union or student group? New vectors to market - online? Move overseas?
Diversification HIGH RISK
Eg move to connected market (legal services? Accountancy?)
Boston Matrix
Cost allocation
Best use of resources
STAR. CASH COW
QUESTION MARK. DOG
SWOT
Balanced view
Leverage strength
Turn threats to opportunities
STRENGTHS. WEAKNESSES
OPPORTUNITIES. THREATS
PEST
Political
Environmental/economic
Social
Technological
Customer Matrix
Focus on customer needs/values
Visual format
Benchmark against competitors
McKinsey Seven S
Super ordinate goals
Structure
System
Style
Staff
Skills
Strategy
Kotter 8 steps to lead change
Establish sense of urgency
Form powerful guiding coalition
Create a vision
Communicate vision
Empower others to act
Plan short term wins
Consolidate improvements
Institutionalise improvements
