Risk and compliance - 5 tips when planning for regulator reviews

Video | December 2018 | 02:59
Transcript
Christian Blackwell Hello, and welcome to the next in our risk and compliance video series. I'm here today with Alina Rotari from our Regulatory Compliance Consulting team to talk about five ways that firms can prepare more effectively for a regulatory visit or a review.
Alina Rotari

Thank you Christian.   Well, I think firms should always be one step ahead and keep an eye on what the FCA is actually releasing and by that I mean in particular the annual business plan in which the FCA usually outlines its key priorities and areas which it plans on focusing on in the upcoming year but also any thematic plans and reviews it plans on undertaking.  So it's quite important for firms to know what the FCA's expectations are for the upcoming year and it also gives a good outlook into what the FCA is actually going to review.

Secondly, you always have to be prepared in advance, so if you have a requirements notice from the regulator you have to be aware of what the regulator is actually expecting of you in that review and by that I mean you have to make sure that your management and the relevant staff are aware and are prepared for what is likely to occur and this usually takes the form of a mock interview. You have to make sure that your processes and outputs are in place, that your documents are ready for audit but more importantly you have to make sure that the requested documents have not been altered or changed.

Christian Blackwell Is there anything that the firm can do more strategically on an ongoing basis to prepare for these sorts of visits or reviews?
Alina Rotari

The risk management strategy within any organisation should be designed in a way to prevent and avoid the regulators in question or investigation but in the case this has already occurred, the internal strategy should make sure it covers any areas that the regulators may challenge them on.

So the fourth point is to get the right people involved in the organisation and by that I mean firms should ensure that they have established an internal programme management in order to ensure that the review goes and the structure is efficient, there is coordination and that there is accountability for any decision that is made.

Christian Blackwell So we've looked at planning, we've looked at getting the right people involved and we've looked at strategically. Is there anything else more generally that firms can do to prepare?
Alina Rotari So last, but not least, I think that suitability is becoming the big buzz word for the regulator at the moment. And we've seen it happen more often now that the regulator expects to see within a firm a certain process and a standard by which firms can demonstrate that their activities and their products and the advice that they give is suitable for the target market and the target client.
Christian Blackwell Thank you very much Alina, that was great, see you next time.

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