PeopleClear Perspective: Geopolitical Friction and the Conduct Pressure Cooker
For years, we’ve spoken about geopolitical “shifts.” Today, it feels more like tectonic plates are grinding against one another. From the continued escalation in the Middle East and the war in Ukraine to the “tariff wars” and trade turbulence following the Leeds Reforms, the global map is in a state of permanent volatility.
As founder of 2 companies working in the Financial Services space, I often see leaders treat these as “external” risks, factors for the investment committee or the macro analysts. But there is a second, quieter risk that often goes unaddressed until it’s too late: The impact of global chaos on internal human behaviour.
The “Opportunity” Trap
Uncertainty creates swings, and swings create opportunities. In highly volatile markets, the line between “agile trading” and “improper behavior” starts to blur. When markets are predictable, conduct is easier to manage. When they are erratic, the pressure to “take advantage” or “hedge the chaos” can lead individuals to take risks they and their firms cannot afford.
This isn’t just a theory. History shows that during periods of extreme market stress, two things happen:
- The pressure to perform spikes.
- The oversight “noise” increases.
Under this dual pressure, even the most robust compliance frameworks can show cracks.
SMCR: The Shield, Not the Sword
In the UK, the Senior Managers and Certification Regime (SMCR) was designed exactly for these moments. It isn’t just a ledger of who does what; it’s a framework for individual accountability when the world feels unaccountable.
Under the Conduct Rules, every employee is tasked with acting with integrity and due skill. But in a 2026 landscape defined by geopolitical shocks, “Reasonable Steps” for a Senior Manager look very different than they did five years ago.
If your firm is navigating this turbulence, ask yourself:
- Is our culture “Conduct-Ready” or just “Rule-Ready”? Rules are static; culture is what dictates a trader’s behavior at 4:00 PM on a Friday when a new tariff is announced.
- Are we evidencing oversight in real-time? Legacy systems that rely on monthly “check-ins” are too slow for today’s market swings.
- Are we training for the “Grey Areas”? Most conduct breaches don’t start with malice; they start with a high-pressure decision made in a vacuum of information.
Compliance as a Stabiliser
At PeopleClear, we believe that the more “loud” the world gets, the more “quiet” your internal processes should be. You cannot control the Middle East or the global tariff landscape, but you can control the clarity of your accountability.
By stripping out the manual noise and ensuring every Senior Manager has a “single source of truth” for their responsibilities, you turn compliance from a bureaucratic anchor into a strategic stabiliser.
In a world of tectonic shifts, the firms that win won’t just be the ones who navigate the markets best, they’ll be the ones who manage their people and their conduct with the most clarity.
Andrew Pullman, Founder & CEO, PeopleClear
About the Series: PeopleClear Perspectives
This series is curated by Andrew Pullman, Founder of PeopleClear. Having seen the complexities of the regulatory landscape firsthand, Andrew writes PeopleClear Perspectives to help Senior Managers move beyond “ticking boxes” toward a culture of genuine accountability.
PeopleClear is a boutique RegTech firm helping financial services professionals master SMCR with ease and precision.