Arrow Visits

ARROW stands for Advanced Risk Responsive Operating Framework and is an audit using impact and probability to assess risk. Risk-based supervision is the way in which the FSA discharges its objectives by embedding the principles of good regulation. They focus on key risks using thematic and other regulatory tools.

ARROW is about applying their risk assessment framework and consumer and industry wide themes towards a firm. The greater the impact and probability of risk, the closer the relationship the FSA will have with a firm. If a firm is considered to be of only ‘low impact,’ they are assessed instead through benchmark monitoring, thematic work and sampling.

Firms have been experiencing tougher Arrow visits over recent months as the FSA is actively challenging the quality of firms’ governance and the viability of their strategies, as they feel the financial crisis has demonstrated that senior management judgments may not always be reliable. Given the action that can flow from a poor Arrow visit, it is vital that firms prepare properly. We can help you prepare from as little as £500 per day (sole traders), depending on the services required.

The FSA has introduced B.R.A.W. (Business Risk Awareness programme) in which they see three ‘Cornerstones’ in a business, which are: Control, Governance and Culture. The FSA believe good business practice to be synonymous with good risk management. The emphasis is on encouraging firms to view these issues from an FSA perspective. Another way of looking at the issue would be, “If you were setting up a new business today and had to consider its operation and manage the risks, how would you go about it?”

It is the FSAs expectation to see evidence of a risk monitoring programme; looking for the previous TCF Gap Analysis to evolve into a more holistic review, including: identification, monitoring and management of risks by reviewing Controls, Culture, Governance of the firm on an ongoing basis. This is where Regulatory Services Limited can help and we recommend that you contact us today to book a Compliance Review visit.

Please contact us for further information.