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Though MICs may not necessarily be licensed, the SFC can pursue enforcement action against MICs and has stated that it will do so more actively going forwards.
“To change corporate culture and behaviour more effectively, we will make active use of the Manager In-Charge regime to identify culpable individuals, particularly in large organisations with complex management structures”
“Our Manager-In-Charge regime also greatly expanded our ability to pursue enforcement action against individuals engaged in financial misconduct”
“Our Manager-In-Charge regime also greatly expanded our ability to pursue enforcement action against individuals engaged in financial misconduct”
True to its word, in January, 2022, the SFC disciplined an individual who was an RO and an MIC for supervisory failures.
1.Consider whether it would be apt for the board to make certain decisions as such decisions represent collective rather than individual decisions.
2.Delineate and document responsibilities and reporting lines clearly at the board level to avoid failings as a result of misunderstandings as to expectations.
3. Document specific policies and procedures setting out step-by-step expectations to evidence management oversight rather than rely upon customary practices.
4. Though pursuit of best practices can discharge personal responsibility and are to be encouraged, avoid setting unnecessarily high standards in formal documentation against which MIC performance may be measured.
5. Take professional advice when setting policies and procedures both to ensure proper consideration of regulatory requirements and to evidence responsible decision-making.
6.Consider D&O insurance coverage to ensure that should the SFC take enforcement action, independent legal advice is available to individual MICs.
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