A recent panel discussion at Nicsa's 2023 General Membership Meeting, A Confident Board, delved into the strategies for effective governance within the asset and wealth management industry,
The panel was moderated by Amy Merrill, Senior Manager, EY. Panelists included Gary Casagrande, Senior Vice President - Head of US Fund Administration, Northern Trust, Joanne Kane, Chief Compliance Officer, SS&C Technologies, and Rosa Licea-Mailloux, Vice President and Head of Compliance, Americas, MFS Investment Management
The discussion revolved around the critical interplay between board oversight, compliance, and operational understanding within an organization. The participants emphasized the necessity of a well-designed compliance framework, rooted in a deep comprehension of organizational operations. They stressed that crafting policies and procedures demands an awareness of the real-world dynamics to ensure monitoring and testing align with the organizational reality.
Outsourcing:
The importance of understanding outsourcing was highlighted, not just in terms of where and how it occurs but also why certain functions are outsourced. This understanding is crucial for aligning with business units overseeing these processes or service providers.
Operations:
The conversation touched on the symbiotic relationship between compliance and operations. The participants stressed the need for a robust partnership and communication between asset managers, service providers, and compliance and operations officers. Standardization is encouraged, not only for efficiency but also as a risk mitigation strategy, avoiding divergent processes that could increase risk.
Operating Models:
The discussion extended to the broader topic of the search for “the right” operating model. The consensus was that operating models should be tailored to the organization's current strengths and must continuously evolve. The participants emphasized the need for organizations to assess what they excel at and what should be outsourced. Long-term considerations are crucial, questioning whether the organization will maintain proficiency in a particular area and, if not, whether outsourcing to specialized service providers is a strategic move.
In summary, the discussion underscored the evolving role of compliance officers, the critical relationship between compliance and operations, and the importance of a flexible and tailored operating model that aligns with organizational strengths and future trajectories. Effective governance is a collaborative effort that requires ongoing communication and partnership among key stakeholders.
Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain legal advice regarding these or any other matters. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices.
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