The risk paradigm

Our Board is committed to high standards of risk and regulatory management across our business and service operations.

We operate a ‘three lines of defence’ model, which enables us to monitor and proactively manage risk; allowing us to respond swiftly to any identified issues.

1st line

Provided by individual business functions who have primary responsibility for implementing key controls for identifying and managing regulatory risks. Helping to ensure on-going compliance and monitoring of their control’s effectiveness.

2nd line

Provided by our expert risk and compliance function who are responsible for monitoring, reporting and providing advice to individual business functions.

3rd line

Provided by our internal and external audit teams, offering independent assurance that the processes and controls in lines 1 and 2 are appropriate and operating effectively.

Team led by femal executive in meeting looking serious

Mitigate to innovate

The risk governance structure includes a monthly Management Risk Committee, which assesses the day-to-day governance of risk.

Appropriate records of risk management activities are retained in Management Risk Committee minutes, supporting documentation, and data recorded on Target’s Risk Management system.

Compliance Management

Compliance management

Our Compliance function spans over three key areas:

The advisory team

The Advisory Team provides advice and guidance to the business via service desk requests and project support to ensure all staff are conducting business in a compliant way that ensures fair outcomes for consumers. The team review and approve operational policy & procedures, letter suites, training material and system changes/testing to ensure regulatory compliance.

The regulatory development team

The Regulatory Development Team continually monitor developments within the industry. They produce monthly compliance bulletins and regulatory alerts to assess impact to clients and address any regulatory/industry change.

The financial crime team

The Financial Crime Team provides oversight and support relating to financial crime matters to the operation. Responsible for dealing with all aspects concerning financial crime, including money-laundering & terrorist finance prevention, sanction checking, anti-corruption policy, and fraud management issues.

Colleagues and auditors sitting around a table

Monitoring and Audit Functions

The Risk & Compliance monitoring plan is set on an annual basis with a degree of flexibility built in to accommodate any emerging issues.

We utilise several monitoring techniques in our approach to compliance monitoring, including regular monitoring, thematic reviews and ad hoc monitoring checks.


Internal Audit follows a risk-based annual audit programme approved by the Board. This ensures appropriate coverage of operational and support areas, including focusing on information security and regulatory adherence. Internal Audit management of the closure of audit findings and significant matters are escalated to the Risk & Audit committee as appropriate.

Authorisations and accreditations

Our servicing division is authorised and regulated by the Financial Conduct Authority, number 454569, and we have the following authorisations:

  • Administering and arranging a regulated mortgage contract – customer

  • Administering and arranging a home reversion plan – customer

  • Arranging deals in investments – Professional/Retail

  • Permission on the FCA Register

  • We also hold the ISAE3402 (SAS70) accreditation

FCA logo
FCA Reference number: 454569

Turn risk aversion into opportunity conversion

It’s difficult to know where to start when assessing risk across your business. By tapping into our proven credentials and expertise we can help you minimise risks and maximise opportunities in your business. Take a look at our Risk and Compliances Services page.

Risk and Compliance Bulletin

Get the latest risk and compliance news straight to your inbox and stay ahead of the game.