Strategic report Governance Financial statements Other information CORPORATE GOVERNANCE REPORT CONTINUED The Group’s principal operating subsidiaries carry out its business The Group will continue to embed the regime and over the next Overview of activities during the financial year of providing regulated financial products and services. The boards year will be making improvements to associated processes, of the principal operating subsidiaries include various members of systems and controls to deliver the desired outcomes expected by the Group Executive Committee, with independent Non-Executive our customers, and the Regulator, but most importantly providing 14% 19% Directors also sitting on the Board of Hargreaves Lansdown Fund insight into, and support for, cultural changes and values at HL. Standard items incl. Governance, risk and updates from regulatory Managers Ltd in line with regulatory requirements. Each board is Board allocation of time and key Board activities Remuneration responsible for ensuring that its business is operated in accordance and Nomination with relevant legal and regulatory requirements, within the The Board devoted a significant amount of time during the period Committees framework of the strategy, culture and policies determined by under review to overseeing the Group’s business performance the Board. The subsidiary boards are assisted by committees and the action being taken in pursuit of its strategic objectives. constituted to assist in the day-to-day managementandoversight This has included regular updates from the Chief Executive Officer on business performance and progress of strategic initiatives, 22% of their businesses, including a CASS Committee to oversee the deep dives into areas of strategic importance, and the review and Finance, reporting 45% protection of client assets, and investment committees to oversee approval of the Group’s annual operating plan. and audit Business investment decision making and compliance with internal performance investment-related processes. The COVID-19 pandemic has naturally had a significant impact on and strategy Senior Managers & Certification Regime (SMCR) the Group’s operations in the period under review, and the Board During the period under review, the Group continued to embed the has overseen and supported the action taken by the Group’s SMCR governance framework, with a focus on communication and Executive management in response to the pandemic, as well as education for all employees. A tailored and more specific approach receiving updates on the resilience of the business to continue to Other key matters considered by the Board during the period was taken with Senior Managers performing a designated senior operate and service the Group’s clients in extraordinary times. under review include: management function (SMFs) with respect to their obligations The Board has continued to receive periodic reports relating to Business performance, through regular updates from the Chief under the Senior Managers Regime; also with HL’s Certified events arising out of the suspension of, and subsequent decision • population in advance of submitting their annual fit and proper by Link Asset Services to wind up, the LF Equity Income Fund Executive Officer; assessment; and with all colleagues on Conduct Rules, to achieve (formerly Woodford Equity Income Fund). •Progress against strategic initiatives, via the Chief Executive our regulatory milestones of 31 March 2021. The following chart illustrates the time spent by the Board Officer’s regular business priorities updates; As part of embedding the framework, the SMCR Office was formed on matters within the categories stated. •Deep dives into Advice, ESG, investment strategy, NPS, and has brought in significant expertise and leadership to the operational resilience, inclusion and diversity and cyber security; Group. A revised operating model has been launched ensuring Financial performance and investor relations, via the Chief that SMCR becomes part of what we do on an everyday basis, •Financial Officer’s regular updates; enabling the business to thrive at scale. 74 Hargreaves Lansdown Report and Financial Statements 2021