Retained Executive Search for Senior Managers
Some Senior Manager appointments are too important, too confidential or too hard to fill to leave to whoever happens to be on the market. A chief executive, a CFO for a bank, a chair, a branch head for an overseas insurer: for roles like these, a retained executive search gives you a dedicated, structured process that maps the whole market, approaches the people who aren’t looking, and assesses every candidate for approvability before they reach your shortlist. SMF Capital runs retained searches for Senior Manager Function roles at FCA and PRA-regulated firms, each led personally by Adrian Lawrence FCA.
Retained or Contingent: What’s the Difference?
In a contingent search, a recruiter is paid only if they place a candidate. That suits many roles, but it encourages speed over depth and usually means recruiters focus on candidates who are already looking. In a retained search, the firm engages a search partner exclusively and pays in stages through the process. The search partner commits to a defined method, timetable and level of reporting, and covers the whole market rather than the visible part of it.
| Retained search | Contingent recruitment | |
|---|---|---|
| Exclusivity | One search partner, committed to the assignment | Often several agencies competing |
| Fee structure | Staged fees through the search | Paid only on placement |
| Candidate pool | The whole market, including people not looking | Mostly active candidates |
| Process | Defined stages, market map and regular reporting | Varies by agency |
| Confidentiality | High; the firm’s name is protected until the right stage | Lower, especially with multiple agencies |
| Best for | Board, executive and critical control function roles | Roles with a larger active candidate pool |
When Retained Search Is the Right Choice for an SMF
- The role is a board or executive Senior Manager: SMF1, SMF2, SMF4 or a chair or committee chair
- The candidate pool is narrow, as for an SMF19 branch head or a Head of Internal Audit with specific sector experience
- The search must be confidential, for example because the incumbent hasn’t yet left
- The firm is under regulatory scrutiny and the appointment must be demonstrably rigorous
- The board wants to compare an internal candidate with the market; see internal promotion or external hire
- Several Senior Managers must be appointed together, as in a multi-SMF team build or a new authorisation
For many compliance officer and MLRO roles at smaller firms, a contingent or fractional approach works well, and we offer both. We’ll tell you honestly which approach suits your role.
How a Retained SMF Search Works
- Briefing and role design. We meet the chair, chief executive or nomination committee and agree the role, the Senior Manager Function, the draft Statement of Responsibilities and the candidate profile. We produce a written brief and, where useful, a candidate pack. See writing an SMF job description.
- Market mapping. We map the people who hold, or are ready to hold, the role at comparable firms, across regulators, advisory firms and industry.
- Confidential approaches. We approach candidates directly and discreetly, explaining the opportunity without naming your firm until there is genuine interest.
- Assessment. We interview candidates in depth and test them against the fit and proper test: prior approvals, regulatory history, directorships and financial soundness. Adrian Lawrence FCA interviews every shortlisted candidate personally.
- Shortlist and report. We present a shortlist with a written assessment of each candidate, including our view on approvability and any points the regulator is likely to raise.
- Client interviews and references. We manage the interview process, start regulatory references early and complete pre-offer checks.
- Offer, approval and onboarding. We help structure the offer, support the Form A and stay involved through the regulator’s decision to the candidate’s first day. See managing the gap between offer and approval.
What You Receive
| Stage | Deliverable |
|---|---|
| Start | Written brief, agreed timetable and candidate profile |
| Weekly | Progress update: approaches made, interest, emerging candidates |
| Shortlist | Shortlist report with candidate assessments and approvability notes |
| Interviews | Interview guidance and structured feedback |
| Offer | Reference reports, offer advice and support with the Form A |
| After appointment | Check-ins through approval and the first months in role |
Scenario: The chair of a specialist lender needs to replace the chief executive confidentially, while the incumbent prepares to step down. A retained search maps chief executives and senior executives at comparable lenders, approaches candidates without naming the firm, and presents a shortlist of three, each with a written assessment of how the regulator is likely to view them. The board appoints the preferred candidate, the regulator interviews her, and approval is granted before the announcement is made.
Why a Specialist SMF Search Partner
General executive search firms are good at finding senior leaders. An SMF search also needs an understanding of the regime: which function the role is, what the regulator will look for, how to handle regulatory references, and how long approval will take. Getting those wrong can cost months or lose a candidate. Every SMF Capital search is designed around approvability from the first conversation, and led by a Chartered Accountant and former listed-company Finance Director who understands what boards and regulators need.
Timescales vary with the role, but a retained search typically produces a shortlist within four to six weeks. Approval then follows the regulator’s timetable; see how long an SMF appointment takes.
Retained Search for Firms Seeking Authorisation
Firms applying for authorisation often need to appoint several Senior Managers before they can trade, and the regulator will assess those people as part of the application. A retained search suits this well: the firm needs a coordinated team, appointed in the right order, with every candidate capable of approval. We sequence the appointments so the chief executive and chair are in place to help choose the rest of the team, and the control functions are ready when the application is submitted. See going directly authorised and building an SMF team from scratch.
Why SMF Searches Fail, and How Retained Search Prevents It
| Common cause of failure | How a retained process addresses it |
|---|---|
| A shortlist of candidates who can’t be approved | Fit and proper pre-assessment before anyone reaches the shortlist |
| Too few candidates, because only active jobseekers were approached | A full market map and direct approaches to people in role |
| Confidentiality breached by multiple agencies | One search partner and a controlled approach strategy |
| Late surprises in regulatory references | Early, structured referencing and candid conversations with candidates |
| Candidate lost to a counter-offer during approval | Active management of the offer-to-approval gap |
Combining Retained Search With Interim Cover
A retained search for a critical role often runs alongside an interim appointment. If the outgoing Senior Manager has already left, an approved interim holder keeps the function running and the regulator reassured while the permanent search runs properly, without pressure to accept the first available candidate. We can provide both, coordinated so the interim and permanent appointments fit together. See fractional and interim SMF cover.
Executive Search for Senior Managers
Retained, contingent, interim and fractional SMF appointments. Every SMF search is led personally by Adrian Lawrence FCA
Board and Executive
Retained leadership searches.
Control Functions
Risk, audit and compliance.
→ Chief Risk Officer (SMF4)
→ Head of Internal Audit (SMF5)
Other Ways We Work
When retained isn’t needed.
→ SMF recruitment services
→ Interim and fractional
Every SMF search is led personally by Adrian Lawrence FCA
Frequently Asked Questions
How is a retained search paid for?
Retained fees are usually paid in stages through the search rather than only on placement. We agree the fee and stages with you at the outset.
Is retained search only for very senior roles?
It is most common for board and executive Senior Managers, but it also suits any SMF role where the candidate pool is narrow or confidentiality is essential.
How long does a retained SMF search take?
A shortlist typically takes four to six weeks, followed by interviews, offer and regulatory approval.
Can you include our internal candidate?
Yes. We can assess an internal candidate alongside external candidates on the same basis, so the board has a fair comparison.
Do you guarantee the appointment?
We agree the terms that apply if an appointee leaves early, or if approval is not granted, before the search begins.
About the Author
Adrian Lawrence FCA is the founder of SMF Capital. He is a Chartered Accountant and Fellow of the ICAEW, holds a practising certificate in his own name, and is a former listed-company Finance Director with a BSc from Queen Mary College, University of London. He founded FD Capital in 2018 and has since built a network of five specialist recruitment practices, including Exec Capital for C-suite and board appointments. He leads every SMF Capital retained search personally. View Adrian’s ICAEW profile.
Considering a Retained Search?
Tell us about the role and we’ll recommend the right approach, retained or otherwise, and set out how the search would run. We’ll come back to you the same working day.