David Hunter, senior business development manager at Rockstead talks about the firm and its ambition to help firms grow and improve their standards in the sector.
Tell us about your firm and what makes it different from other firms in your sector.
Rockstead is a governance, risk and compliance consultancy and is well known for its history in carrying out due diligence, specifically around mortgages and loans. We are a service supplier to the financial services sector helping any firm that wants to carry out independent reviews of processes, policies, systems or assets. That can mean anything from carrying out assessments of specific mortgage origination techniques, portfolio reviews after completion, or acting as second/third lines of defence. We are often engaged as external reviewers of policies and procedures and our specific expertise helps companies build out their own strategic intent and can help assess risks not immediately apparent internally.
We differ from other firms in a number of ways; first we have been active in the sector for 16 years, secondly we are recognised as the market leaders in our field, and thirdly have the most experienced staff too, having built the business over that period with the assistance of specialists drawn from all sectors of the market place.
When, how and why was Rockstead founded?
Brian Pitt and Richard Gater had worked together in the late 80’s and had helped set up one of the first specialist intermediary lenders in the UK. In 2008 they met up again to swap views and recognised that their combined expertise gave them unique insights into the marketplace to introduce a different level of independent oversight to the financial services sector. They carried out significant client research with business contacts throughout the lending, distribution and legal sectors, and it was clear that previous providers had not satisfied client needs; they were looking for experience and technical knowledge to support their own businesses.
Remember, during GFC, various American banks and owners of UK assets had retreated to the USA, leaving mortgage assets with servicers but with no-one to manage those portfolios. We created Rockstead to fill that gap, quickly grew and developed a multi-product strategy to satisfy a wider audience. To do that we needed experts and turned to previous colleagues from throughout the FS sector to help us build the company. Today we employ over 30 of the most experienced individuals and have one of the strongest boards around.
Why did Rockstead join the Council?
We pride ourselves on keeping up to date on all regulatory and compliance matters and with our roots around mortgages and loans, always stay close to developments in that market. Our various exploits over the years include belonging to various trade associations, where we have played active parts, and as the later life sector developed, we wanted to bring our services to that audience. So, to access the experts in that sector, who have the technical expertise, including distribution and lending strategies was a no brainer. In addition, we were increasingly being asked by some of our funder clients to carry out independent reviews on some of the players in it, as several of your members know. We are happy to help firms improve processes and ensure compliance with the relevant bodies.
How might your services benefit other members and/or their clients?
By bringing a truly independent oversight of firms involved in all parts of the value chain. We also have an ambition to help firms grow and improve their own standards by applying our expertise to the sector. Or as we sometimes state “bringing some grey hair to the party”. It’s great having internal QA or QC teams and we always expect to find those in properly run firms, but as the regulatory regime kicks into our lives in a more intrusive way, it’s not just ‘doing it’ but ‘proving it’ which that counts. Having external consultants to support your business can prove essential nowadays and helps to de-risk the chances of regulatory sanctions in the event of failure of processes or systems. Even those involved in non-regulated activities have responsibilities under the fundamental business principles to ensure they are behaving appropriately. The implementation of Consumer Duty in firms is a good example.
We operate in a consultative manner, and that starts with proper debate around the hopes, concerns and needs of a business and not a prescriptive form filling exercise. Knowledge of firms’ method of operations and style is critical in our onboarding process.
What are the greatest opportunities and challenges facing your firm at the moment?
Obviously, the financial services market, as the largest service sector in the UK, continues to grow and busy people seek help with advice and management of personal financial affairs. In our opinion the later life sector is one that will continue to grow as changes in the way individuals manage their later years continues to develop.
Our service proposition needs to stay relevant and able to react to market conditions quickly, as issues can crop up at short notice; the FCA commission review in motor finance being an example and one where we are watching carefully to see where our service may be required.
As to challenges, through the Covid years, large numbers of seasoned professionals decided they didn’t want to work anymore so left the market. That shrinking pool of talent is an issue across the working population, so we are always seeking good people to work with us to maintain our reputation and grow the business.
Where do you see the firm in five years?
Our plan is to continue to grow our business, and develop our service and product proposition for our expanding client base. Maintaining our fleet of foot position and reacting to the constant changes in the financial services market is what we are all about and we want to play a significant part in the improvement of standards throughout the industry.
Is there anything else you want to tell us?
Yes – give us a call to see how we can help – there’s no cost for a chat!
- The views of contributors are not necessarily shared by the Council
