Recommendation 122

Several witnesses cited the frequent rotation of staff in supervisory teams as a concern. TheCityUK told us that: “Poor understanding of firms’ business models is exacerbated by regular churn in supervisory teams.” 196 We received evidence that frequent rotation requires firms to invest significant time and resources into rebuilding relationships with their supervisory teams and developing new supervisors’ understanding of a firm’s sector and business model. Cuan Coulter, Executive Vice-President, Global Head of Asset Managers, and Head of UK and Ireland at State Street told us that: “A lot of my administrative time is spent educating field supervisors; that is a reason why there is a lag between intention and execution. … In the field, you spend quite a bit of time educating field supervisors.” 197