When You Really Need To Know Your Environment
When You Really Need to Know Your Environment: Why Experience is Essential in Regulated Industries
In the world of financial services, particularly in Australia, the stakes are high. As a highly regulated industry, it is responsible for managing and safeguarding Australians’ retirement assets, especially in sectors like superannuation, where the majority of people have their funds in default options.
When an organization needs to respond to heightened scrutiny, market events, or regulatory changes, structure and governance frameworks are critical. But there are times when a playbook or a highly capable team isn’t sufficient. This is where experience matters—when those who have navigated complex regulatory environments before can help ensure you get it right.
Navigating a Complex Regulatory Landscape
The financial services industry, especially superannuation, faces constant regulatory changes. Events like COVID-19, the focus on environmental, social, and governance (ESG) factors, and mandates like the retirement income covenant all drive regulatory bodies to take deeper dives into compliance. Similarly, headline events such as "fees for no service" further intensify the scrutiny.
In these moments, you need the individuals who have "seen the movie before," who understand the intricate product sets, regulatory nuances, and stakeholder expectations, and can help guide your teams through.
This doesn’t mean you are outsourcing the work. In fact, the best approach is to bring in support to coach your teams and share the tips and traps.
Case Study: Due Diligence Support for M&A work
Merger and Acquisitions within highly regulated industries often involves a deep and considered assessment of the opportunities and risks associated with any target entity or company.
These issues require expertise at an industry, entity and business level, from Regulatory Obligations through to operational processes that need to be executed to meet customer promises and needs.
At Entregar Partners, we have helped numerous clients through due diligence support for their teams in assessing target companies and businesses. This work has assisted in both successful client acquisitions and transitions as well as client bids that have not progressed as a result of our support and assistance in deeply critiquing the risks associated with the target organisation.
Through multiple assignments, we’ve been able to:
Help support the client and bidding team in the due diligence process
Help support with the client transition implementation and safe landing of the acquired business into the clients’ operating perimeter
Help the client uplift and enhance the operating and risk and control environment of their combined businesses post transition.
One area where experience matters in client businesses in a post-acquisition target state is in relation to the risk and control environment and CPS230 compliance. This regulatory standard requires businesses to fully understand their critical operations, their reliance on material service providers, and their business resilience plans. By leveraging experience, we have helped organizations build the necessary frameworks for compliance, ensuring they have absolute clarity of their operating environments and are well-prepared to meet regulatory demands.
Conclusion: The Value of Experience
There are undoubtedly times when internal resources can successfully deliver business change. However, when the stakes are high complementing internal teams with external, experienced advisors and experts can accelerate delivery and ensure success.
This is when experience matters—when knowing your environment inside out can make the difference between regulatory compliance and business risk. At Entregar Partners, we specialize in providing the experience and guidance needed to navigate these complex opportunities and to deliver successful outcomes.
About the Author
Matt Lawrance is the Executive Chair of Entregar Partners; a senior executive with extensive experience in the financial services sector, particularly in running superannuation and large finance and operations businesses. Matt has a proven track record of driving transformational initiatives, strengthening governance frameworks, and helping organizations meet their regulatory obligations.