PRIN 2A.8 Governance and culture

A firm must:

1. (1)

   ensure that Principle 12 and the obligations in this chapter are reflected in their strategies, governance, leadership and people policies, including incentives at all levels; and

2. (2)

   ensure that retail customer outcomes are a central focus of:

   1. (a)

      the firm’s risk control arrangements under SYSC; and

   2. (b)

      the firm’s internal audit function.

A firm must prepare a report for its governing body setting out the results of its monitoring under PRIN 2A.9 and any actions required as a result of the monitoring.

At least annually, the governing body of a firm must:

1. (1)

   review and approve the firm’s report on the outcomes being received by retail customers;

2. (2)

   confirm whether it is satisfied that the firm is complying with its obligations under Principle 12 and PRIN 2A; and

3. (3)

   assess whether the firm’s future business strategy is consistent with its obligations under Principle 12 and PRIN 2A.

When approving the firm’s report under PRIN 2A.8.4R(1), the governing body of the firm must also agree:

1. (1)

   any action required to address any identified risk that retail customers may not receive good outcomes;

2. (2)

   any action required to address any identified instance where retail customers have not received good outcomes; and

3. (3)

   any amendments to the firm’s business strategy to ensure that it remains consistent with meeting the firm’s obligations under Principle 12 and PRIN 2A.