Most candidates focus on securing a financial services NED role. Very few position themselves in a way that actually secures the appointment.
Some conversations are useful. Others sharpen how you think about a topic entirely.
My recent webinar conversation with Stephanie Henderson Begg from Red Queen Advisory fell firmly into the latter. It was very popular, and resonated strongly with our audience, all of whom are either already in, or actively working towards, regulated Non-Executive Director roles.
Red Queen Advisory works with financial services firms on risk, regulation and governance, partnering with boards to navigate complex regulatory frameworks and scrutiny. Stephanie therefore brings a perspective shaped by working directly with firms where regulatory expectations are not theoretical, but lived in practice.
Between us, we sit on both sides of the same challenge. Red Queen Advisory brings that regulatory and advisory lens, having worked inside the system and alongside boards under scrutiny. My work at Hanover Talent Solutions | City CV sits alongside senior leaders navigating these roles in real time, helping them position themselves credibly and secure board appointments.
What became very clear is this: the gap between being considered for a financial services NED role, and being effective once appointed, is far wider than most expect.
Here are the themes that consistently matter.
1. The misconception that quietly blocks strong candidates
The most common misunderstanding that I regularly speak about, and one Stephanie reinforced immediately, is the belief that you need to understand everything. You don’t.
Financial services boards are too complex, too technical, and too fast moving for any one individual to hold full depth across every domain. That is not what you are appointed for.
What matters is whether you can operate at a level where you understand enough of the regulatory landscape to ask questions that move the discussion forward.
Under SMCR (The Senior Managers and Certification Regime), that becomes part of how you discharge your responsibilities. Curiosity here is not optional. It is a core capability.
2. Regulation shapes how boards think
One of the most important shifts for aspiring Financial Services NEDs is recognising that regulation is not a separate workstream. It underpins every decision.
Frameworks such as SMCR, Consumer Duty, and capital and liquidity requirements influence how boards approach strategy, resilience and growth.
The core questions are consistent:
- What are the risks?
- How are they understood and controlled?
- Could this position stand up to scrutiny?
As Stephanie put it, regulators are not asking boards to do something extra. They are asking them to demonstrate that they are already doing it, properly and consistently.
This is where many candidates fall short. They talk about what they delivered. Boards listen for how they think.
3. Not all NED roles are equal and some come with direct regulatory accountability
There is still a surprising amount of confusion around how SMCR applies to NEDs, and not all roles are treated equally.
All board members are expected to meet the Individual Conduct Rules. However, certain NED roles – typically Chair, Committee Chairs and Senior Independent Director – are designated as Senior Management Functions. Where this is the case, the individual must be formally approved by the regulator before taking up the role.
Other NED roles may not require approval, but are still notifiable, meaning the regulator is informed of the appointment.
For candidates, this creates an important distinction. You are not just being assessed by the hiring firm. Depending on the role, you may also need to meet a separate regulatory test of suitability.
That process can include detailed applications, “fit and proper” assessments and, in some cases, direct engagement with the FCA or PRA. Your experience, reputation and judgement all come under scrutiny. The firm’s case for your appointment, and your own narrative, need to hold together.
For NEDs holding an SMF role, this also brings the concept of “reasonable steps” into focus.
This is not theoretical. If something goes wrong, regulators will look retrospectively at how you exercised oversight in practice. The question is not whether you intended to act appropriately, but whether you can demonstrate that you did.
That means being able to evidence:
- the questions you asked
- the challenge you provided
- the decisions you influenced
- • how you followed issues through
It is not enough to have been present.
You need to be able to show, clearly and evidentially, how you discharged your responsibilities in the role.
4. Technical documents matter, but differently
Documents such as ICAAP, ILAAP and wind down plans can feel impenetrable.
In practice, they come back to something much simpler: understanding the risks, stress testing them, and demonstrating that the firm can withstand them. NEDs are not expected to rewrite these documents, but they are expected to stand behind them. That shifts the question from detail to judgement.
Can you challenge the assumptions, the methodology and the conclusions in a way that strengthens the outcome?
5. Where boards actually struggle
Boards rarely struggle because they lack technical expertise. They struggle because of how that expertise is used.
The warning signs are consistent:
- Limited or ineffective challenge
- Drift into operational detail
- Imbalance in contribution around the table
I see the same in my executive coaching. Executives stepping into NED roles often default to what made them successful. They solve, direct and intervene. That is rarely what the board needs. It needs perspective, independent judgement and well timed challenge.
6. Challenge is a visible skill
One of the most practical parts of our discussion was what effective challenge looks like in reality. The strongest NEDs tend to ask:
- Why has this approach been taken?
- What assumptions sit behind it?
- How has risk been factored in?
- What would concern us most if this went wrong?
That approach tests the thinking while allowing management to engage constructively. The opposite is easy to recognise. Challenge that is overly directive or overly detailed quickly limits influence.
7. The shift is deeper than most expect
The move from executive to NED is not a progression. It is a transition. Executives lead through action. NEDs influence through judgement.
Boards are not looking for someone to run the business. They are looking for someone who can stand back from it, assess it and hold it to account.
You can hear that shift in how candidates talk about decision making, escalation and accountability. It is rarely explicit, but it is always noticed.
8. What effective candidates do differently
This is not about sounding impressive. It is about being effective. The candidates who succeed in regulated NED appointments tend to:
- Translate experience into governance, oversight and risk language
- Demonstrate awareness of regulatory expectations without overplaying detail
- Show reflective learning, particularly where things did not go to plan
- Evidence how they operate with complexity and competing risks
- Position themselves in a way that aligns with both board and regulatory scrutiny
Final thought
Financial services NED roles are demanding, visible and increasingly accountable. What separates those who are appointed and succeed is their ability to bridge three things:
- Technical understanding of the regulatory environment
- Board level judgement and oversight
- The behavioural awareness to operate effectively in a small, high stakes system
That bridge is rarely built by accident. It is built through deliberate board-readiness branding, thoughtful preparation and a clear understanding of what the role requires in practice. Thank you Stephanie Henderson-Begg for a great session.
If you’d like to explore this further, I regularly share insights on board careers here on LinkedIn, with a strong focus on CVs, LinkedIn, Interviews and board-readiness. You’re also very welcome to join me and the brilliant Eleanor Anderson for our upcoming session on NED interview success. See all of our upcoming Masterclasses.