FNZ (UK) Ltd Governance
FNZ is committed to firm-wide governance and a risk management framework that is appropriate to the nature, scale, and complexity of the business. Under the ‘Three Lines of Defence’ model, the Board has ultimate responsibility for managing and controlling risk within FNZ’s stated risk appetite.
To assist FNZ in fulfilling its responsibilities an organisational structure is in place which manages risks across the business. Responsibilities for managing risks are allocated to:
First Line – Business functions retain primary responsibility for managing risks and operating an effective suite of internal controls;
Second Line – Includes specialist functions such as Risk & Compliance, Legal, and Information Security. These functions operate independent of the First Line and are tasked with the ongoing development and delivery of the risk management framework. Second line functions provide guidance and challenge as appropriate;
Third Line – This is Internal Audit. FNZ’s Internal Audit function is responsible for providing the Board with independent assurance around the management of risk and internal control assurance.
The framework above is governed and structured through a variety of tools that assist employees in understanding their responsibilities. In addition to the general training and development courses provided, FNZ ensures, amongst other things, the following:
- That risk is a core consideration when setting strategy, formulating business plans and managing performance.
- That the risk and control self-assessment process facilitates the identification and assessment of risks across all business units and provides a systematic means of identifying risk and control gaps.
- The establishment of an effective risk management governance structure distinguishing between management, oversight activity, and accountability.
- That the firm’s risk appetite is clearly articulated in order to safeguard stakeholder assets whilst achieving FNZ’s objectives.
- The development and implementation of risk policies and procedures.
The governance process in place ensures that appropriate risks and/or events are identified and escalated in a timely fashion. Where a risk is deemed to pose a significant threat to FNZ’s clients or strategic objectives, it will be escalated to the FNZ Board. The Board then delegates certain activities to the Board Risk & Compliance Committee (“BRCC”), which reports back in respect of these activities.
FNZ makes a number of regulatory disclosures including Pillar 3 and remuneration. Both these disclosures are available on request and include further information on the processes that govern how FNZ identifies, manages, and mitigates risk.
Gender Pay Gap 2018 - FNZ UK (Ltd)
A copy of the FNZ Gender Pay Gap 2018 report can be accessed here
FNZ Anti-Slavery Statement
Financial Year 2016
Section 54 of the Modern Slavery Act 2015 requires organisations with a turnover of £36 million or more to report on the processes and due diligence employed to ensure that their supply chains are slavery free, and to produce and publish a slavery and human trafficking statement of such endeavours each financial year.
This statement is therefore a summary of the steps that FNZ has taken during the financial year to ensure that slavery and human trafficking is not taking place in its supply chains.
FNZ is a market leading provider of end-to-end technology and a highly scaled industrial strength back-office investment service to the financial services and wealth management sectors. Our service supports a wide range of asset types and works across a range of currencies and markets to drive our customers’ businesses around the globe. Our service platform combines cutting edge software, industrial scale, secure infrastructure and efficient asset servicing to offer cost-effective, bespoke wealth management solutions.
FNZ recognises that there are challenges ahead in relation to the highly dynamic and fluid matter of modern slavery. We acknowledge that there may be some areas where more visibility of the broad supply chain is required, particularly at Tier 2 and below. Therefore we commit to map out, review and address the potential risks in the countries where we source products and services, which feed into our end product.
At this early stage FNZ commits to the highest level of transparency in relation to any gaps or issues that we may identify, and we will develop our policies and standards over time. We have a zero tolerance approach to slavery and human trafficking.
The Role of Procurement
Modern slavery does affect many industries, and while it is certainly illegal in every country in the world, it still occurs across the globe. FNZ Procurement has a critical role to play, through sourcing in a manner that enables and rewards suppliers for good employment practices, rather than purchasing in a manner which drives the use of modern day slavery practices.
We will make all reasonable attempts to identify and address risks such as those related to forced labour and human trafficking, evaluating the supply chain over no less than a 24 month period to identify risks at global, regional, and local levels.
FNZ has already taken steps to combat slavery in the supply chain, updating the Procurement Policy and our due diligence processes respectively, to set the scene for this zero tolerance approach. We ensure that, while setting up commercial arrangements with our global suppliers, we discuss compliance with international standards, and always ask our suppliers to adhere to all applicable laws and regulations.
In addition, we plan to introduce a supplier code of conduct which will strictly prohibit both forced labour and child labour as a minimum standard in securing or maintaining a commercial relationship with FNZ. We will include steps to be taken in the eventuality that we do identify any evidence of risk, and we will commit to taking a responsible approach to remediation, in order to prevent the risk of worsening the conditions for anyone who is a victim of modern slavery.
FNZ commits to invest in training its procurement professionals and lead buyers in order to ensure continuous development in this area.
Signed by Adrian Durham, CEO.