The “new” role for human resource management: influencing behaviour under the FSA regime

In the first of a two-part article on the implications of the FSA’s regulatory approach for people management and development, Viv Pyne of PricewaterhouseCoopers considers the shift in emphasis from rule-based compliance to a culture of commitment underpinned by risk management and looks at the tools available to achieve organisational competence.

Standards of behaviour

A number of consultation papers (CPs) have told us about how the FSA intends to influence behaviour in regulated firms, principally in CP 53 (The Regulation of Approved Persons: Controlled Functions) and the Policy Statement “High level standards for firms and individuals - Issues arising out of CP 35 and CP 26”. Between them, these documents specify the standards of behaviour for approved persons and the organisational context within which approved persons must operate, with a notable emphasis on risk management. In establishing these standards and changes the FSA has created a heady brew for all those concerned with people management and development. But a new role for the new regime?