SD-17.6 — Talent & Human Capital

Business Domain: BD-17 Corporate Services & Resources (Cross-cutting — corporate) · Applies: BOTH

Purpose

Recruits, develops, compensates and retains the firm’s staff. SD-17.6 runs the firm’s human-capital function. At an investment manager this is not generic HR: the firm’s people are its capability, and the function carries investment-management-specific weight — the remuneration codes that govern how variable pay is structured and deferred, the senior-managers and certification regime that requires the firm to certify staff as fit and proper, and the particular problem of compensating and retaining investment talent (carried interest, deferred compensation, the alignment of pay with the risk taken). It is not the firm’s governance of conduct — the code of ethics and personal-account dealing are SD-14.2; SD-17.6 manages the people, SD-14.2 governs how they must behave.

Service Operations

• Recruit and onboard — attract, select and onboard the firm’s staff.
• Develop and manage performance — training, development, performance management and succession planning.
• Administer compensation — operate the firm’s compensation, including the variable-pay structures and the deferral, malus and clawback the remuneration codes require.
• Run the certification regime — assess and certify staff as fit and proper under the senior-managers and certification regime, and maintain the accountability mapping.
• Manage retention and the people risk — manage talent retention and the key-person risk the firm carries.

Inputs and outputs

• Inputs: the firm’s resourcing needs; the remuneration regulation; the certification-regime requirements; performance and risk outcomes that feed variable pay.
• Outputs: the firm’s staffing, the compensation outcomes, the certification record and the succession plan — consumed by SD-17.1 (payroll cost), SD-14.2 (the certification and accountability record), the governing bodies and the regulators.

Entities

• Consumes: the firm’s people and role records.
• Owns: the firm’s human-capital and compensation records — a process artefact.

Standards

• The remuneration codes — the AIFMD and UCITS Remuneration provisions, the FCA Remuneration Code, the SEC pay rules — deferral, malus and clawback, pay-risk alignment.
• The SMCR (the Senior Managers & Certification Regime) and equivalent senior-accountability regimes.
• General human-capital practice as the baseline beneath the investment-management-specific operations.

Open extensions

• The remuneration-code and certification operations versus the general-HR baseline.
• The carried-interest and deferred-compensation sub-model.
• The Service-Operation-level input/output contracts.